U.S. patent application number 14/016961 was filed with the patent office on 2014-01-09 for systems, computer-implemented methods, and computer medium to determine premiums and indemnities for supplemental crop insurance.
The applicant listed for this patent is WATTS AND ASSOCIATES, INC.. Invention is credited to Joe Atwood, Jim Driscoll, Steve Loar, Alex Offerdahl, Jeff Stabnow, Tim J. Watts.
Application Number | 20140012606 14/016961 |
Document ID | / |
Family ID | 49779030 |
Filed Date | 2014-01-09 |
United States Patent
Application |
20140012606 |
Kind Code |
A1 |
Watts; Tim J. ; et
al. |
January 9, 2014 |
Systems, Computer-Implemented Methods, and Computer Medium to
Determine Premiums and Indemnities for Supplemental Crop
Insurance
Abstract
Provided are systems, machines, non-transitory computer medium
having computer program instructions stored thereon, and
computer-implemented methods for providing a premium or an
indemnity for a supplemental crop insurance policy. The methods
including providing for display of a supplemental crop insurance
policy information content page including one or more loss
parameter fields to be populated by a user with a corresponding set
of supplemental crop insurance parameters, receiving a set of
supplemental crop insurance parameters submitted by a user via
populating the one or more parameter fields of the supplemental
crop insurance policy information content page, determining a
premium or an indemnity for the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
parameters, and providing for the display of a supplemental crop
insurance policy content page including the premium or the
indemnity for the supplemental crop insurance policy.
Inventors: |
Watts; Tim J.; (Billings,
MT) ; Offerdahl; Alex; (Stevensville, MT) ;
Atwood; Joe; (Bozeman, MT) ; Driscoll; Jim;
(Overland Park, KS) ; Loar; Steve; (Billings,
MT) ; Stabnow; Jeff; (Billings, MT) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
WATTS AND ASSOCIATES, INC. |
BILLINGS |
MT |
US |
|
|
Family ID: |
49779030 |
Appl. No.: |
14/016961 |
Filed: |
September 3, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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61824732 |
May 17, 2013 |
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61834753 |
Jun 13, 2013 |
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61845132 |
Jul 11, 2013 |
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61856425 |
Jul 19, 2013 |
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61871726 |
Aug 29, 2013 |
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Current U.S.
Class: |
705/4 |
Current CPC
Class: |
G06Q 50/02 20130101;
G06Q 40/00 20130101; G06Q 40/08 20130101 |
Class at
Publication: |
705/4 |
International
Class: |
G06Q 40/08 20060101
G06Q040/08 |
Claims
1. A system comprising: an electronic communications network; a
user device; and a supplemental insurance server communicatively
coupled to the user device via the electronic communications
network, the supplemental insurance server being configured to:
serve, to the user device, a supplemental crop insurance policy
information content page comprising one or more policy parameter
fields configured to be populated by a user with a corresponding
set of supplemental crop insurance policy parameters, and serve, to
the user device, a supplemental crop insurance policy indemnity
information content page comprising one or more loss parameter
fields configured to be populated by a user with a corresponding
set of supplemental crop insurance loss parameters, the user device
being configured to: display the supplemental crop insurance policy
information content page, receive a set of supplemental crop
insurance policy parameters submitted by a user via populating the
one or more policy parameter fields of the supplemental crop
insurance policy information content page, and transmit the set of
supplemental crop insurance policy parameters to the supplemental
insurance server, and display the supplemental crop insurance
policy indemnity information content page, receive a set of
supplemental crop insurance loss parameters submitted by a user via
populating the one or more loss parameter fields of the
supplemental crop insurance policy indemnity information content
page, and transmit the set of supplemental crop insurance loss
parameters to the supplemental insurance server, the supplemental
insurance server being configured to: determine a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters, and to serve, to the
user device, a supplemental crop insurance policy information
content page comprising the premium for the supplemental crop
insurance policy, and determine an estimated indemnity for a loss
under the supplemental crop insurance policy based at least in part
on the set of supplemental crop insurance loss parameters, and to
serve, to the user device, a supplemental crop insurance policy
indemnity information content page comprising the estimated
indemnity for the loss under the supplemental crop insurance
policy, and the user device being further configured to: display
the supplemental crop insurance policy information content page
comprising the premium for the supplemental crop insurance policy,
and display the supplemental crop insurance policy indemnity
information content page comprising the estimated indemnity for the
loss under the supplemental crop insurance policy.
2. The system of claim 1, wherein determining a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters comprises determining
the premium for a supplemental crop insurance policy corresponding
to the set of supplemental crop insurance policy parameters in
real-time using one or more predetermined pricing functions; and
wherein determining an estimated indemnity for a loss under the
supplemental crop insurance policy based at least in part on the
set of supplemental crop insurance loss parameters comprises
determining an estimated indemnity for a loss under the
supplemental crop insurance policy based at least in part on the
set of supplemental crop insurance loss parameters in real-time
using one or more predetermined indemnity functions.
3. The system of claim 1, wherein determining a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters comprises:
determining a premium amount for each selected coverage of a
supplemental policy; summing premium amounts for selected coverages
to generate a premium amount; and applying a coverage factor and
quantity factor to the premium amount to generate a premium for the
supplemental crop insurance supplemental policy.
4. The system of claim 3, wherein determining a premium amount for
each selected coverage of a supplemental policy is based at least
in part on application of a policy rating algorithm.
5. The system of claim 3, wherein summing premium amounts for
selected coverages to generate a premium amount comprises summing
premium amounts per acre for a coverage level for all alternative
price discovery periods elected.
6. The system of claim 3, wherein applying a coverage factor and
quantity factor to the premium amount to generate a premium for the
supplemental policy comprises applying a liability adjustment
factor, a percentage protection per acre, a number of insured acres
and a share to the premium amount to generate a premium for the
supplemental crop insurance policy.
7. The system of claim 1, wherein the one or more policy parameter
fields comprise fields for at least one of the following: a crop to
be insured, an estimate of a number of acres to be planted by type
and practice for a crop year, production databases for an insured
crop, an estimate of anticipated actual yield by unit, type and
practice for a current crop year, a coverage level elected for a
supplemental policy, an insurance plan elected, a liability
adjustment factor, an alternative price discovery period, or a
maximum price movement limit.
8. The system of claim 1, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
loss parameters comprises: determining a highest alternative
projected price; determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price;
and in response to determining that the highest alternative
projected price does not exceed the projected price or the RMA
harvest price, determining that an estimated indemnity for a loss
under the supplemental crop insurance policy is zero.
9. The system of claim 1, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
loss parameters comprises: determining whether the supplemental
crop insurance policy is associated with an RP or GRIP insurance
plan; in response to determining that the supplemental crop
insurance policy is associated with an RP insurance plan,
determining an estimated indemnity for a loss under the
supplemental crop insurance policy using one or more predetermined
indemnity functions associated with RP insurance plans; and in
response to determining that the supplemental crop insurance policy
is associated with a GRIP insurance plan, determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
GRIP insurance plans.
10. The system of claim 9, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
RP insurance plans comprises: determining a highest alternative
projected price; determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price;
and in response to determining that the highest alternative
projected price does exceed the projected price or the RMA harvest
price: applying a coverage level to an approved yield for each type
and practice to generate a yield coverage; applying a highest
projected price to the yield coverage to generate a coverage
amount; applying the coverage amount to insured acreage to generate
an insured coverage amount; applying a production count to a
harvest price to generate a production amount; reducing the insured
coverage amount by the production amount to generate a production
loss; applying a share to the production loss to generate an
eligible production loss; determining a RP indemnity; reducing the
eligible production loss by the RP indemnity to generate an
eligible loss; and applying a liability adjustment factor to the
eligible loss to generate an estimated indemnity for the
supplemental crop insurance policy.
11. The system of claim 9, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
GRIP insurance plans comprises: determining a highest alternative
projected price; determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price;
in response to determining that the highest alternative projected
price does exceed the projected price or the RMA harvest price:
determining a policy protection adjustment factor; applying the
policy protection adjustment factor to policy protection for each
type and practice to generate a coverage amount; determining a
trigger revenue for each type and practice based at least in part
on expected county yield, highest projected price, and selected
coverage level; determining a county ratio based at least in part
on the county revenue and the trigger revenue for each type and
practice; applying the county ratio and the coverage amount to
insured acreage and a share to generate an eligible production
loss; determining a GRIP indemnity; reducing the eligible
production loss by the GRIP indemnity to generate an eligible loss;
and applying a liability adjustment factor to the eligible loss to
generate an estimated indemnity for the supplemental crop insurance
policy.
12. The system of claim 1, wherein determining a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters comprises: acquiring
futures data corresponding to the set of supplemental crop
insurance policy parameters; and applying a rating algorithm to the
futures data to determine a premium for a supplemental crop
insurance policy.
13. A system comprising: one or more processors; and one or more
memories storing program instruction that are executable by the one
or more processors to cause the following steps: providing for
display of a supplemental crop insurance policy indemnity
information content page comprising one or more loss parameter
fields configured to be populated by a user with a corresponding
set of supplemental crop insurance loss parameters; receiving a set
of supplemental crop insurance loss parameters submitted by a user
via populating the one or more loss parameter fields of the
supplemental crop insurance policy indemnity information content
page; determining an estimated indemnity for a loss under the
supplemental crop insurance policy based at least in part on the
set of supplemental crop insurance loss parameters; and providing
for the display of a supplemental crop insurance policy indemnity
information content page comprising the estimated indemnity for the
loss under the supplemental crop insurance policy.
14. The system of claim 13, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
loss parameters comprises determining an estimated indemnity for a
loss under the supplemental crop insurance policy based at least in
part on the set of supplemental crop insurance loss parameters in
real-time using one or more predetermined indemnity functions.
15. The system of claim 13, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
loss parameters comprises: determining a highest alternative
projected price; determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price;
and in response to determining that the highest alternative
projected price does not exceed the projected price or the RMA
harvest price, determining that an estimated indemnity for a loss
under the supplemental crop insurance policy is zero.
16. The system of claim 13, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
loss parameters comprises: determining whether the supplemental
crop insurance policy is associated with an RP or GRIP insurance
plan; in response to determining that the supplemental crop
insurance policy is associated with an RP insurance plan,
determining an estimated indemnity for a loss under the
supplemental crop insurance policy using one or more predetermined
indemnity functions associated with RP insurance plans; and in
response to determining that the supplemental crop insurance policy
is associated with a GRIP insurance plan, determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
GRIP insurance plans.
17. The system of claim 16, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
RP insurance plans comprises: determining a highest alternative
projected price; determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price;
and in response to determining that the highest alternative
projected price does exceed the projected price or the RMA harvest
price: applying a coverage level to an approved yield for each type
and practice to generate a yield coverage; applying a highest
projected price to the yield coverage to generate a coverage
amount; applying the coverage amount to insured acreage to generate
an insured coverage amount; applying a production count to a
harvest price to generate a production amount; reducing the insured
coverage amount by the production amount to generate a production
loss; applying a share to the production loss to generate an
eligible production loss; determining a RP indemnity; reducing the
eligible production loss by the RP indemnity to generate an
eligible loss; and applying a liability adjustment factor to the
eligible loss to generate an estimated indemnity for the
supplemental crop insurance policy.
18. The system of claim 16, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
GRIP insurance plans comprises: determining a highest alternative
projected price; determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price;
in response to determining that the highest alternative projected
price does exceed the projected price or the RMA harvest price:
determining a policy protection adjustment factor; applying the
policy protection adjustment factor to policy protection for each
type and practice to generate a coverage amount; determining a
trigger revenue for each type and practice based at least in part
on expected county yield, highest projected price, and selected
coverage level; determining a county ratio based at least in part
on the county revenue and the trigger revenue for each type and
practice; applying the county ratio and the coverage amount to
insured acreage and a share to generate an eligible production
loss; determining a GRIP indemnity; reducing the eligible
production loss by the GRIP indemnity to generate an eligible loss;
and applying a liability adjustment factor to the eligible loss to
generate an estimated indemnity for the supplemental crop insurance
policy.
19. A computer implemented method for presenting an estimated
indemnity for a supplemental crop insurance policy, the method
comprising: serving, to a user device for display to a user, a
supplemental crop insurance policy indemnity information content
page comprising one or more loss parameter fields configured to be
populated by a user with a corresponding set of supplemental crop
insurance loss parameters; receiving a set of supplemental crop
insurance loss parameters submitted by a user via populating the
one or more loss parameter fields of the supplemental crop
insurance policy indemnity information content page; determining,
by one or more processors, an estimated indemnity for a loss under
the supplemental crop insurance policy based at least in part on
the set of supplemental crop insurance loss parameters; and
serving, to the user device for display to the user, a supplemental
crop insurance policy indemnity information content page comprising
the estimated indemnity for the loss under the supplemental crop
insurance policy.
20. The method of claim 19, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
loss parameters comprises determining an estimated indemnity for a
loss under the supplemental crop insurance policy based at least in
part on the set of supplemental crop insurance loss parameters in
real-time using one or more predetermined indemnity functions.
21. The method of claim 19, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
loss parameters comprises: determining a highest alternative
projected price; determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price;
and in response to determining that the highest alternative
projected price does not exceed the projected price or the RMA
harvest price, determining that an estimated indemnity for a loss
under the supplemental crop insurance policy is zero.
22. The method of claim 19, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
loss parameters comprises: determining whether the supplemental
crop insurance policy is associated with an RP or GRIP insurance
plan; in response to determining that the supplemental crop
insurance policy is associated with an RP insurance plan,
determining an estimated indemnity for a loss under the
supplemental crop insurance policy using one or more predetermined
indemnity functions associated with RP insurance plans; and in
response to determining that the supplemental crop insurance policy
is associated with a GRIP insurance plan, determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
GRIP insurance plans.
23. The method of claim 22, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
RP insurance plans comprises: determining a highest alternative
projected price; determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price;
and in response to determining that the highest alternative
projected price does exceed the projected price or the RMA harvest
price: applying a coverage level to an approved yield for each type
and practice to generate a yield coverage; applying a highest
projected price to the yield coverage to generate a coverage
amount; applying the coverage amount to insured acreage to generate
an insured coverage amount; applying a production count to a
harvest price to generate a production amount; reducing the insured
coverage amount by the production amount to generate a production
loss; applying a share to the production loss to generate an
eligible production loss; determining a RP indemnity; reducing the
eligible production loss by the RP indemnity to generate an
eligible loss; and applying a liability adjustment factor to the
eligible loss to generate an estimated indemnity for the
supplemental crop insurance policy.
24. The method of claim 22, wherein determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
GRIP insurance plans comprises: determining a highest alternative
projected price; determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price;
and in response to determining that the highest alternative
projected price does exceed the projected price or the RMA harvest
price: determining a policy protection adjustment factor; applying
the policy protection adjustment factor to policy protection for
each type and practice to generate a coverage amount; determining a
trigger revenue for each type and practice based at least in part
on expected county yield, highest projected price, and selected
coverage level; determining a county ratio based at least in part
on the county revenue and the trigger revenue for each type and
practice; applying the county ratio and the coverage amount to
insured acreage and a share to generate an eligible production
loss; determining a GRIP indemnity; reducing the eligible
production loss by the GRIP indemnity to generate an eligible loss;
and applying a liability adjustment factor to the eligible loss to
generate an estimated indemnity for the supplemental crop insurance
policy.
Description
RELATED APPLICATIONS
[0001] This application claims the benefit of and priority to U.S.
Provisional Patent Application No. 61/824,732, filed on May 17,
2013, and titled "SYSTEMS, COMPUTER MEDIUM AND COMPUTER-IMPLEMENTED
METHODS FOR MANAGING SUPPLEMENTAL CROP INSURANCE POLICIES"; U.S.
Provisional Patent Application No. 61/834,753, filed on Jun. 13,
2013, and titled "SYSTEMS, COMPUTER MEDIUM AND COMPUTER-IMPLEMENTED
METHODS FOR MANAGING SUPPLEMENTAL CROP INSURANCE POLICIES"; U.S.
Provisional Patent Application No. 61/845,132, filed on Jul. 11,
2013, and titled "SYSTEMS, COMPUTER MEDIUM AND COMPUTER-IMPLEMENTED
METHODS FOR MANAGING SUPPLEMENTAL CROP INSURANCE POLICIES"; U.S.
Provisional Patent Application No. 61/856,425, filed on Jul. 19,
2013, and titled "SYSTEMS, COMPUTER MEDIUM AND COMPUTER-IMPLEMENTED
METHODS FOR MANAGING SUPPLEMENTAL CROP INSURANCE POLICIES"; and
U.S. Provisional Patent Application No. 61/871,726, filed on Aug.
29, 2013, and titled "SYSTEMS, COMPUTER MEDIUM AND
COMPUTER-IMPLEMENTED METHODS FOR MANAGING SUPPLEMENTAL INSURANCE
POLICIES", the disclosures of which are each hereby incorporated by
reference in their entireties.
BACKGROUND OF THE INVENTION
[0002] 1. Field of the Invention
[0003] This invention relates generally to insurance technology and
more particularly to systems, machines, computer-implemented
methods, and non-transitory computer medium having computer program
instructions stored thereon for determining insurance policy
characteristics.
[0004] 2. Description of the Related Art
[0005] Insurance is used to manage risks for uncertain losses. A
company or entity selling insurance is often referred to as the
"insurer" or "insurance carrier," and the person or entity buying
the insurance policy is often referred to as the "insured" or
"policyholder." The amount of money to be charged for insurance
coverage is referred to as the "premium" for the insurance policy.
In a traditional insurance transaction, the insured assumes a
guaranteed and known relatively small loss in the form of payment
(e.g., the premium payment) to the insurer in exchange for the
insurer's promise to compensate, or "indemnify" the insured in the
case of a financial loss. A contract, or "insurance policy,"
details the coverage, or the conditions and circumstances under
which the insured will be financially compensated by the
insurer.
[0006] In the context of auto insurance, for example, a person may
purchase an auto insurance policy from an auto insurance carrier
and the auto insurance carrier will be responsible for some or all
of losses associated with events covered by the auto insurance
policy, such as the person being involved in a car wreck. Similar
insurance policies are available for any variety of conditions and
circumstances. In the context of crop insurance, for example, an
agricultural producer, such as a farmer, rancher or the like, may
purchase a crop insurance policy from a crop insurance carrier and
the crop insurance carrier will be responsible for some or all of
losses associated with events covered by the crop insurance policy,
such as the loss of crops due to natural disasters, such as hail,
drought and floods, or the loss of revenue due to low prices, such
as declines in the prices of agricultural commodities.
[0007] In some instances, supplemental insurance policies are
available to further manage risks for uncertain losses.
Supplemental insurance policies may cover losses that fall outside
of other insurance policies. For example, where a framer has a
primary crop insurance coverage that covers some of the losses
associated with their crops, the farmer may have an additional,
supplemental policy that covers some or all of the losses that are
not covered by the primary crop insurance. The amounts paid under
supplemental insurance policies depend on the conditions and
circumstances defined by the policies. These conditions and
circumstances can include whether or not payment is due to the
insured under the primary insurance policy and how much the payment
is under the primary insurance policy. Accordingly, the factors
that contribute to payments under insurance policies can be very
complex. As premiums for insurance are typically based on the risk
associated with the payments, determining premiums can be very
complex as well. As a result of these complexities, there is often
a delay (e.g., hours, days or weeks) associated with the process
for determining a premium and, thus, an insurance agent may not be
able to readily provide potential clients with premium amounts,
such as while the agent is with the client "at the kitchen table"
negotiating with the client. Unfortunately, as a result of these
types of delays, clients may become disinterested while waiting for
the premium to be provided and may not purchase the insurance
policy. Moreover, agents and clients may not be able to quickly
determine premium amounts based on edits to the policy terms due to
the delays associate with determining the premium amounts. Similar
delays and issues may be present when calculating indemnity amounts
for a loss under an insurance policy. As a result, existing clients
may become frustrated with the indemnity process and may elect to
switch to another insurance carrier.
SUMMARY OF THE INVENTION
[0008] Applicant has recognized several shortcomings of existing
techniques for determining characteristics for supplemental
insurance policies and, in view of these shortcomings, has
recognized the need for improved techniques for determining
premiums and indemnities for supplemental insurance policies.
Applicant has recognized that although existing systems may
generate premiums or estimate premiums, many techniques do not
effectively consider risks associated with the coverage of
supplemental insurance policies, do not provide an easy to follow
structure for determining insurance policy premiums for
supplemental insurance policies and/or do not provide an easy to
follow structure for determining estimates of indemnities due under
supplemental insurance policies. Thus, existing techniques for
determining characteristics for supplemental insurance policies
fail to provide a framework for effectively considering risks
associated with the coverage of supplemental insurance policies,
determining premiums for supplemental insurance policies, or
indemnities due under supplemental insurance policies. Applicant
has recognized that such shortcomings have failed to be addressed
by others, and has recognized that such shortcomings may be
addressed by a system that can effectively consider risks
associated with the coverage of supplemental insurance policies
when determining premiums for supplemental insurance policies and
determining indemnities due under supplemental insurance policies.
Such a system may reduce the overall complexity of assessing risks
for determining reasonable premiums for supplemental insurance
policies, and provide confidence to the insured regarding indemnity
payments under supplemental insurance policies. Such efficient and
effective determinations can assist in securing insurance policies.
For example, supplemental crop insurance premiums for supplemental
crop insurance policies and indemnity amounts under supplemental
crop insurance policies can be determined quickly so that an
insurance agent can readily provide them to a client (or
prospective client). In view of the foregoing, various embodiments
of the present invention advantageously provide systems, machines,
non-transitory computer medium having computer program instructions
stored thereon, and computer-implemented methods for determining
characteristics for supplemental insurance policies.
[0009] Various embodiments of methods and apparatus for determining
characteristics for supplemental insurance policies are provided
herein. In certain embodiments, provided is a system that includes
an electronic communications network, a user device, and a
supplemental insurance server communicatively coupled to the user
device via the electronic communications network. The supplemental
insurance server may be adapted to serve, to the user device, a
supplemental crop insurance policy information content page
including one or more policy parameter fields adapted to be
populated by a user with a corresponding set of supplemental crop
insurance policy parameters and serve, to the user device, a
supplemental crop insurance policy indemnity information content
page including one or more loss parameter fields adapted to be
populated by a user with a corresponding set of supplemental crop
insurance loss parameters. The user device may be further adapted
to display the supplemental crop insurance policy information
content page, receive a set of supplemental crop insurance policy
parameters submitted by a user via populating the one or more
policy parameter fields of the supplemental crop insurance policy
information content page, and transmit the set of supplemental crop
insurance policy parameters to the supplemental insurance server.
The user device may be further adapted to display the supplemental
crop insurance policy indemnity information content page, receive a
set of supplemental crop insurance loss parameters submitted by a
user via populating the one or more loss parameter fields of the
supplemental crop insurance policy indemnity information content
page, and transmit the set of supplemental crop insurance loss
parameters to the supplemental insurance server. The supplemental
insurance server may be adapted to determine a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters, and to serve, to the
user device, a supplemental crop insurance policy information
content page including the premium for the supplemental crop
insurance policy. The supplemental insurance server may be further
adapted to determine an estimated indemnity for a loss under the
supplemental crop insurance policy based at least in part on the
set of supplemental crop insurance loss parameters, and to serve,
to the user device, a supplemental crop insurance policy indemnity
information content page including the estimated indemnity for the
loss under the supplemental crop insurance policy. The user device
may be further adapted to display the supplemental crop insurance
policy information content page including the premium for the
supplemental crop insurance policy, and display the supplemental
crop insurance policy indemnity information content page including
the estimated indemnity for the loss under the supplemental crop
insurance policy.
[0010] In certain embodiments, determining a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters includes determining
the premium for a supplemental crop insurance policy corresponding
to the set of supplemental crop insurance policy parameters in
real-time using one or more predetermined pricing functions. In
certain embodiments, determining an estimated indemnity for a loss
under the supplemental crop insurance policy based at least in part
on the set of supplemental crop insurance loss parameters includes
determining an estimated indemnity for a loss under the
supplemental crop insurance policy based at least in part on the
set of supplemental crop insurance loss parameters in real-time
using one or more predetermined indemnity functions.
[0011] In some embodiments, determining a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters includes: determining
a premium amount for each selected coverage of a supplemental
policy, summing premium amounts for selected coverages to generate
a premium amount, and applying a coverage factor and quantity
factor to the premium amount to generate a premium for the
supplemental crop insurance supplemental policy. In certain
embodiments, determining a premium amount for each selected
coverage of a supplemental policy is based at least in part on
application of a policy rating algorithm. In some embodiments,
summing premium amounts for selected coverages to generate a
premium amount includes summing premium amounts per acre for a
coverage level for all alternative price discovery periods elected.
In certain embodiments, applying a coverage factor and quantity
factor to the premium amount to generate a premium for the
supplemental policy includes applying a liability adjustment
factor, a percentage protection per acre, a number of insured acres
and a share to the premium amount to generate a premium for the
supplemental crop insurance policy.
[0012] In some embodiments, the one or more policy parameter fields
include fields for at least one of the following: a crop to be
insured, an estimate of a number of acres to be planted by type and
practice for a crop year, production databases for an insured crop,
an estimate of anticipated actual yield by unit, type and practice
for a current crop year, a coverage level elected for a
supplemental policy, an insurance plan elected, a liability
adjustment factor, an alternative price discovery period, or a
maximum price movement limit.
[0013] In some embodiments, determining an estimated indemnity for
a loss under the supplemental crop insurance policy based at least
in part on the set of supplemental crop insurance loss parameters
includes: determining a highest alternative projected price,
determining whether the highest alternative projected price exceeds
a projected price or a RMA harvest price, and in response to
determining that the highest alternative projected price does not
exceed the projected price or the RMA harvest price, determining
that an estimated indemnity for a loss under the supplemental crop
insurance policy is zero.
[0014] In certain embodiments, determining an estimated indemnity
for a loss under the supplemental crop insurance policy based at
least in part on the set of supplemental crop insurance loss
parameters includes: determining whether the supplemental crop
insurance policy is associated with an RP or GRIP insurance plan,
in response to determining that the supplemental crop insurance
policy is associated with an RP insurance plan, determining an
estimated indemnity for a loss under the supplemental crop
insurance policy using one or more predetermined indemnity
functions associated with RP insurance plans, and in response to
determining that the supplemental crop insurance policy is
associated with a GRIP insurance plan, determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
GRIP insurance plans.
[0015] In some embodiments, determining an estimated indemnity for
a loss under the supplemental crop insurance policy using one or
more predetermined indemnity functions associated with RP insurance
plans includes: determining a highest alternative projected price,
determining whether the highest alternative projected price exceeds
a projected price or a RMA harvest price, and in response to
determining that the highest alternative projected price does
exceed the projected price or the RMA harvest price: applying a
coverage level to an approved yield for each type and practice to
generate a yield coverage, applying a highest projected price to
the yield coverage to generate a coverage amount, applying the
coverage amount to insured acreage to generate an insured coverage
amount, applying a production count to a harvest price to generate
a production amount, reducing the insured coverage amount by the
production amount to generate a production loss, applying a share
to the production loss to generate an eligible production loss,
determining a RP indemnity, reducing the eligible production loss
by the RP indemnity to generate an eligible loss, and applying a
liability adjustment factor to the eligible loss to generate the
estimated indemnity for the supplemental crop insurance policy.
[0016] In certain embodiments, determining an estimated indemnity
for a loss under the supplemental crop insurance policy using one
or more predetermined indemnity functions associated with GRIP
insurance plans includes: determining a highest alternative
projected price, determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price,
and in response to determining that the highest alternative
projected price does exceed the projected price or the RMA harvest
price: determining a policy protection adjustment factor, applying
the policy protection adjustment factor to policy protection for
each type and practice to generate a coverage amount, determining a
trigger revenue for each type and practice based at least in part
on expected county yield, highest projected price, and selected
coverage level, determining a county ratio based at least in part
on the county revenue and the trigger revenue for each type and
practice, applying the county ratio and the coverage amount to
insured acreage and a share to generate an eligible production
loss, determining a GRIP indemnity, reducing the eligible
production loss by the GRIP indemnity to generate an eligible loss,
and applying a liability adjustment factor to the eligible loss to
generate an estimated indemnity for the supplemental crop insurance
policy.
[0017] In some embodiments, determining a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters includes acquiring
futures data corresponding to the set of supplemental crop
insurance policy parameters, and applying a rating algorithm to the
futures data to determine a premium for a supplemental crop
insurance policy.
[0018] In some embodiments, the one or more policy parameter fields
include fields for at least one of the following: an indemnity paid
under another insurance plan, a production to count, a harvest
price, a highest projected price or a projected price.
[0019] In certain embodiments, provided is a system that includes
an electronic communications network, a user device, and a
supplemental insurance server communicatively coupled to the user
device via the electronic communications network. The supplemental
insurance server may be adapted to serve, to the user device, a
supplemental crop insurance policy information content page
including one or more policy parameter fields adapted to be
populated by a user with a corresponding set of supplemental crop
insurance policy parameters. The user device may be further adapted
to display the supplemental crop insurance policy information
content page, receive a set of supplemental crop insurance policy
parameters submitted by a user via populating the one or more
policy parameter fields of the supplemental crop insurance policy
information content page, and transmit the set of supplemental crop
insurance policy parameters to the supplemental insurance server.
The supplemental insurance server may be adapted to determine a
premium for a supplemental crop insurance policy corresponding to
the set of supplemental crop insurance policy parameters, and to
serve, to the user device, a supplemental crop insurance policy
information content page including the premium for the supplemental
crop insurance policy. The user device may be further adapted to
display the supplemental crop insurance policy information content
page including the premium for the supplemental crop insurance
policy.
[0020] In some embodiments, provided is a system that includes an
electronic communications network, a user device, and a
supplemental insurance server communicatively coupled to the user
device via the electronic communications network. The supplemental
insurance server may be further adapted to serve, to the user
device, a supplemental crop insurance policy indemnity information
content page including one or more loss parameter fields to be
populated by a user with a corresponding set of supplemental crop
insurance loss parameters. The user device may be further adapted
to display the supplemental crop insurance policy indemnity
information content page, receive a set of supplemental crop
insurance loss parameters submitted by a user via populating the
one or more loss parameter fields of the supplemental crop
insurance policy indemnity information content page, and transmit
the set of supplemental crop insurance loss parameters to the
supplemental insurance server. The supplemental insurance server
may be further adapted to determine an estimated indemnity for a
loss under the supplemental crop insurance policy based at least in
part on the set of supplemental crop insurance loss parameters, and
to serve, to the user device, a supplemental crop insurance policy
indemnity information content page including the estimated
indemnity for the loss under the supplemental crop insurance
policy. The user device may be further adapted to display the
supplemental crop insurance policy indemnity information content
page including the estimated indemnity for the loss under the
supplemental crop insurance policy.
[0021] In certain embodiments, provided is a system that includes
one or more processors and one or more memories storing program
instruction that are executable by the one or more processors to
cause the following steps: providing for display of a supplemental
crop insurance policy information content page including one or
more policy parameter fields to be populated by a user with a
corresponding set of supplemental crop insurance policy parameters,
receiving a set of supplemental crop insurance policy parameters
submitted by a user via populating the one or more policy parameter
fields of the supplemental crop insurance policy information
content page, determining, by one or more processors, a premium for
a supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters, and providing for
display of a supplemental crop insurance policy information content
page including the premium for the supplemental crop insurance
policy.
[0022] In some embodiments, provided is a system that includes one
or more processors and one or more memories storing program
instruction that are executable by the one or more processors to
cause the following steps: providing for display of a supplemental
crop insurance policy indemnity information content page including
one or more loss parameter fields to be populated by a user with a
corresponding set of supplemental crop insurance loss parameters,
receiving a set of supplemental crop insurance loss parameters
submitted by a user via populating the one or more loss parameter
fields of the supplemental crop insurance policy indemnity
information content page, determining an estimated indemnity for a
loss under the supplemental crop insurance policy based at least in
part on the set of supplemental crop insurance loss parameters, and
providing for the display of a supplemental crop insurance policy
indemnity information content page including the estimated
indemnity for the loss under the supplemental crop insurance
policy.
[0023] In some embodiments, provided is a computer implemented
method for presenting a premium for a supplemental crop insurance
policy. The method including serving, to a user device for display
to a user, a supplemental crop insurance policy information content
page including one or more policy parameter fields to be populated
by a user with a corresponding set of supplemental crop insurance
policy parameters, receiving a set of supplemental crop insurance
policy parameters submitted by a user via populating the one or
more policy parameter fields of the supplemental crop insurance
policy information content page, determining, by one or more
processors, a premium for a supplemental crop insurance policy
corresponding to the set of supplemental crop insurance policy
parameters, and serving, to the user device for display to the
user, a supplemental crop insurance policy information content page
including the premium for the supplemental crop insurance policy.
In certain embodiments, determining a premium for a supplemental
crop insurance policy corresponding to the set of supplemental crop
insurance policy parameters includes determining a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters in real-time using
one or more predetermined pricing functions and/or simulation-based
calculations.
[0024] In some embodiments, determining a premium for a
supplemental crop insurance policy corresponding to the set of
supplemental crop insurance policy parameters includes: determining
a premium amount for each selected coverage of a supplemental
policy, summing premium amounts for selected coverages to generate
a premium amount, and applying a coverage factor and quantity
factor to the premium amount to generate a premium for the
supplemental crop insurance supplemental policy. In certain
embodiments, determining a premium amount for each selected
coverage of a supplemental policy is based at least in part on
application of a policy rating algorithm. In some embodiments,
summing premium amounts for selected coverages to generate a
premium amount includes summing premium amounts per acre for a
coverage level for all alternative price discovery periods elected.
In certain embodiments, applying a coverage factor and quantity
factor to a premium amount to generate a premium for the
supplemental policy includes applying a liability adjustment
factor, a percentage protection per acre, a number of insured acres
and a share to the premium amount to generate a premium for the
supplemental crop insurance policy.
[0025] In some embodiments, the one or more policy parameter fields
include fields for at least one of the following: a crop to be
insured, an estimate of a number of acres to be planted by type and
practice for a crop year, production databases for an insured crop,
an estimate of anticipated actual yield by unit, type and practice
for a current crop year, a coverage level elected for a
supplemental policy, an insurance plan elected, a liability
adjustment factor, an alternative price discovery period, or a
maximum price movement limit.
[0026] In some embodiments, provided is a computer implemented
method for presenting an estimated indemnity for a supplemental
crop insurance policy. The method including serving, to a user
device for display to a user, a supplemental crop insurance policy
indemnity information content page including one or more loss
parameter fields to be populated by a user with a corresponding set
of supplemental crop insurance loss parameters, receiving a set of
supplemental crop insurance loss parameters submitted by a user via
populating the one or more loss parameter fields of the
supplemental crop insurance policy indemnity information content
page, determining, by one or more processors, an estimated
indemnity for a loss under the supplemental crop insurance policy
based at least in part on the set of supplemental crop insurance
loss parameters, and serving, to the user device for display to the
user, a supplemental crop insurance policy indemnity information
content page including the estimated indemnity for the loss under
the supplemental crop insurance policy.
[0027] In certain embodiments, determining an estimated indemnity
for a loss under the supplemental crop insurance policy based at
least in part on the set of supplemental crop insurance loss
parameters includes determining an estimated indemnity for a loss
under the supplemental crop insurance policy based at least in part
on the set of supplemental crop insurance loss parameters in
real-time using one or more predetermined indemnity functions.
[0028] In some embodiments, determining an estimated indemnity for
a loss under the supplemental crop insurance policy based at least
in part on the set of supplemental crop insurance loss parameters
includes: determining a highest alternative projected price,
determining whether the highest alternative projected price exceeds
a projected price or a RMA harvest price, and in response to
determining that the highest alternative projected price does not
exceed the projected price or the RMA harvest price, determining
that an estimated indemnity for a loss under the supplemental crop
insurance policy is zero.
[0029] In some embodiments, determining an estimated indemnity for
a loss under the supplemental crop insurance policy based at least
in part on the set of supplemental crop insurance loss parameters
includes: determining whether the supplemental crop insurance
policy is associated with an RP or GRIP insurance plan, in response
to determining that the supplemental crop insurance policy is
associated with an RP insurance plan, determining an estimated
indemnity for a loss under the supplemental crop insurance policy
using one or more predetermined indemnity functions associated with
RP insurance plans, and in response to determining that the
supplemental crop insurance policy is associated with a GRIP
insurance plan, determining an estimated indemnity for a loss under
the supplemental crop insurance policy using one or more
predetermined indemnity functions associated with GRIP insurance
plans.
[0030] In some embodiments, determining an estimated indemnity for
a loss under the supplemental crop insurance policy using one or
more predetermined indemnity functions associated with RP insurance
plans includes: determining a highest alternative projected price,
determining whether the highest alternative projected price exceeds
a projected price or a RMA harvest price, and in response to
determining that the highest alternative projected price does
exceed the projected price or the RMA harvest price: applying a
coverage level to an approved yield for each type and practice to
generate a yield coverage, applying a highest projected price to
the yield coverage to generate a coverage amount, applying the
coverage amount to insured acreage to generate an insured coverage
amount, applying a production count to a harvest price to generate
a production amount, reducing the insured coverage amount by the
production amount to generate a production loss, applying a share
to the production loss to generate an eligible production loss,
determining a RP indemnity, and reducing the eligible production
loss by the RP indemnity to generate an eligible loss, and applying
a liability adjustment factor to the eligible loss to generate the
estimated indemnity for the supplemental crop insurance policy.
[0031] In certain embodiments, determining an estimated indemnity
for a loss under the supplemental crop insurance policy using one
or more predetermined indemnity functions associated with GRIP
insurance plans includes: determining a highest alternative
projected price, determining whether the highest alternative
projected price exceeds a projected price or a RMA harvest price,
and in response to determining that the highest alternative
projected price does exceed the projected price or the RMA harvest
price: determining a policy protection adjustment factor, applying
the policy protection adjustment factor to policy protection for
each type and practice to generate a coverage amount, determining a
trigger revenue for each type and practice based at least in part
on expected county yield, highest projected price, and selected
coverage level, determining a county ratio based at least in part
on the county revenue and the trigger revenue for each type and
practice, applying the county ratio and the coverage amount to
insured acreage and a share to generate an eligible production
loss, determining a GRIP indemnity, reducing the eligible
production loss by the GRIP indemnity to generate an eligible loss,
and applying a liability adjustment factor to the eligible loss to
generate an estimated indemnity for the supplemental crop insurance
policy.
[0032] In some embodiments, the one or more policy parameter fields
include fields for at least one of the following: an indemnity paid
under another insurance plan, a production to count, a harvest
price, a highest projected price or a projected price.
[0033] In certain embodiments, provided is an electronic interface
that may be displayed on a display device to permit a user to
submit a set of supplemental crop insurance policy parameters for
use in determining a premium for a supplemental crop insurance
policy corresponding to the set of supplemental crop insurance
policy parameters. The electronic interface may include: a first
display region visualizing a set of personal information fields for
the entry of information relating to a producer, a second display
region visualizing a set of crop/policy information fields for the
entry of information relating to crops and requested policy terms,
a third display region visualizing a first control element that
when selected causes the crop/policy information fields to
correspond to either an RP plan or a GRIP plan, a fourth display
region visualizing a second control element for selecting an
alternative price discovery period, that when selected causes the
display of an additional control element for selecting an
additional alternative price discovery period, and a fifth display
region visualizing a third control element that when selected
initiates real-time calculation of a premium for the supplemental
crop insurance policy based at least in part on the information
relating to the producer submitted via the set of personal
information fields and the information relating to crops and
requested policy terms submitted via the set of crop/policy
information fields.
[0034] In some embodiments, the set of personal information fields
include fields for entry of at least one of the following: a full
name, an address, a city, a state, a zip code, a county, and a
telephone. In certain embodiments, the set of crop/policy
information fields include fields for entry of at least one of the
following: a crop to be insured, an estimate of a number of acres
to be planted by type and practice for a crop year, production
databases for an insured crop, an estimate of anticipated actual
yield by unit, type, and practice for a current crop year, a
coverage level elected for a supplemental policy, an insurance plan
elected, a liability adjustment factor, an alternative price
discovery period, and a maximum price movement limit. In some
embodiments, the electronic interface further includes a fifth
display region visualizing the premium amount calculated in
response to selection of the third control element.
[0035] In certain embodiments, provided is an electronic interface
that may be displayed on a display device to permit a user to
submit a set of supplemental crop insurance loss parameters for use
in determining an estimated indemnity under a supplemental crop
insurance policy corresponding to the set of supplemental crop
insurance loss parameters. The electronic interface including: a
first display region visualizing a set of loss parameter fields for
the entry of information relating to a loss by a producer, and a
second display region visualizing a control element that when
selected initiates real-time calculation of an estimated indemnity
under the supplemental crop insurance policy based at least in part
on the information relating to the loss by the producer submitted
via the loss parameter fields.
[0036] In some embodiments, the set of loss parameter fields
include fields for entry of at least one of the following: an
indemnity paid under another insurance plan, a production to count,
a harvest price, a highest projected price and a projected price.
In some embodiments, the electronic interface further includes a
fourth display region visualizing the estimated indemnity
calculated in response to selection of the control element.
[0037] In certain embodiments, provided is a system that includes
an electronic communications network, a user device, and a
supplemental insurance server communicatively coupled to the user
device via the electronic communications network. The supplemental
insurance server may be adapted to serve, to the user device, a
nursery insurance policy information content page including one or
more policy parameter fields adapted to be populated by a user with
a corresponding set of nursery insurance policy parameters and
serve, to the user device, a nursery insurance policy indemnity
information content page including one or more loss parameter
fields adapted to be populated by a user with a corresponding set
of nursery insurance loss parameters. The user device may be
further adapted to display the nursery insurance policy information
content page, receive a set of nursery insurance policy parameters
submitted by a user via populating the one or more policy parameter
fields of the nursery insurance policy information content page,
and transmit the set of nursery insurance policy parameters to the
supplemental insurance server. The user device may be further
adapted to display the nursery insurance policy indemnity
information content page, receive a set of nursery insurance loss
parameters submitted by a user via populating the one or more loss
parameter fields of the nursery insurance policy indemnity
information content page, and transmit the set of nursery insurance
loss parameters to the supplemental insurance server. The
supplemental insurance server may be further adapted to determine a
premium for a nursery insurance policy corresponding to the set of
nursery insurance policy parameters, and to serve, to the user
device, a nursery insurance policy information content page
including the premium for the nursery insurance policy. The
supplemental insurance server may be further adapted to determine
an estimated indemnity for a loss under the nursery insurance
policy based at least in part on the set of nursery insurance loss
parameters, and to serve, to the user device, a nursery insurance
policy indemnity information content page including the estimated
indemnity for the loss under the nursery insurance policy. The user
device may be further adapted to display the nursery insurance
policy information content page including the premium for the
nursery insurance policy, and display the nursery insurance policy
indemnity information content page including the estimated
indemnity for the loss under the nursery insurance policy.
[0038] In certain embodiments, determining a premium for a nursery
insurance policy corresponding to the set of nursery insurance
policy parameters includes determining a premium for a nursery
insurance policy corresponding to the set of nursery insurance
policy parameters in real-time using one or more predetermined
pricing functions.
[0039] In some embodiments, the user device is further adapted to
display a nursery pre-acceptance content page including one or more
pre-acceptance parameter fields of the nursery pre-acceptance
content page, and receive a set of pre-acceptance parameters
submitted by a user via populating the one or more pre-acceptance
parameter fields of the nursery pre-acceptance content page, and
transmit the set of pre-acceptance parameters to the supplemental
insurance server. The supplemental insurance server may be further
adapted to generate a pre-acceptance score based at least in part
on the set of pre-acceptance parameters, determine whether the
pre-acceptance score satisfies a pre-acceptance threshold score,
and in response to determining that the pre-acceptance score
satisfies a pre-acceptance threshold score, serve, to the user
device, the nursery insurance policy information content page
comprising one or more policy parameter fields configured to be
populated by a user with a corresponding set of nursery insurance
policy parameters.
BRIEF DESCRIPTION OF THE DRAWINGS
[0040] FIG. 1 is a flowchart that illustrates a method for
presenting premium for a supplemental policy in accordance with one
or more embodiments of the present invention.
[0041] FIG. 2 is an illustration of an exemplary supplemental
policy information page in accordance with one or more embodiments
of the present invention.
[0042] FIGS. 2A-2J are illustrations of exemplary supplemental
policy information pages in accordance with one or more embodiments
of the present invention.
[0043] FIG. 3 is a flowchart that illustrates a method for
determining a premium for a supplemental policy in accordance with
one or more embodiments of the present technique.
[0044] FIG. 4 is an illustration of an exemplary supplemental
policy information page including display of a determined premium
for a supplemental policy in accordance with one or more
embodiments of the present invention.
[0045] FIGS. 4A and 4B are illustrations of exemplary supplemental
policy information pages including display of a determined premium
in accordance with one or more embodiments of the present
invention.
[0046] FIG. 5 is a flowchart that illustrates a method for
presenting an estimated indemnity for a supplemental policy in
accordance with one or more embodiments of the present
invention.
[0047] FIG. 6 is an illustration of an exemplary supplemental
policy indemnity information page in accordance with one or more
embodiments of the present invention.
[0048] FIG. 7A is a flowchart that illustrates a method for
determining an estimated indemnity owed under a supplemental policy
for an RP insurance plan in accordance with one or more embodiments
of the present technique.
[0049] FIG. 7B is a flowchart that illustrates a method for
determining an estimated indemnity owed under a supplemental policy
for a GRIP insurance plan in accordance with one or more
embodiments of the present technique.
[0050] FIG. 8 is an illustration of an exemplary supplemental
policy indemnity estimation page including display of an estimated
indemnity in accordance with one or more embodiments of the present
invention.
[0051] FIG. 9 is a block diagram that illustrates a supplemental
policy management environment in accordance with one or more
embodiments of the present invention.
[0052] FIG. 10 is a block diagram that illustrates an exemplary
computer system in accordance with one or more embodiments of the
present invention.
[0053] FIG. 11 is an illustration of an exemplary supplemental
policy information main page in accordance with one or more
embodiments of the present invention.
[0054] FIG. 12A is an illustration of an exemplary Private Area
Revenue (PAR) supplemental policy information page in accordance
with one or more embodiments of the present invention.
[0055] FIG. 12B is an illustration of an exemplary PAR supplemental
policy information page including display of a determined premium
in accordance with one or more embodiments of the present
invention.
[0056] FIGS. 13A-13C are illustrations of exemplary nursery
supplemental policy information pages in accordance with one or
more embodiments of the present invention.
[0057] FIG. 14 is a flowchart that illustrates a method of
pre-acceptance for quoting nursery supplemental insurance in
accordance with one or more embodiments of the present
invention.
[0058] FIGS. 15A and 15B are illustrations of exemplary
pre-acceptance pages in accordance with one or more embodiments of
the present invention.
[0059] FIG. 16 is a block diagram that illustrates a page hierarchy
for a supplemental insurance content site in accordance with one or
more embodiments of the present invention.
[0060] FIG. 17 is an exemplary visualization of the first two
stages of a trinomial tree in accordance with one or more
embodiments of the present technique.
[0061] FIG. 18 is a plot of a sample resulting trajectory (Price
vs. Days) in accordance with one or more embodiments of the present
technique.
[0062] FIG. 19 is a plot of exemplary simulated trajectories in
accordance with one or more embodiments of the present technique.
While the invention is susceptible to various modifications and
alternative forms, specific embodiments thereof are shown by way of
example in the drawings and will herein be described in detail. The
drawings may not be to scale. It should be understood, however,
that the drawings and detailed description thereto are not intended
to limit the invention to the particular form disclosed, but to the
contrary, the intention is to cover all modifications, equivalents,
and alternatives falling within the spirit and scope of the present
invention as defined by the appended claims.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
Glossary of Terms
[0063] Supplemental Policy--a non-reinsured supplemental (NRS)
insurance product, e.g., a supplemental crop insurance revenue
protection coverage, that provides additional coverage for other
insurance policies, such as Revenue Protection (RP) and Group Risk
Income Protection-Harvest Revenue Option (GRIP) policies.
[0064] Alternative price discovery period--the period of time that
begins on the calendar date chosen from those offered and that ends
on the calendar date that is the specified number of days
later.
[0065] Alternative projected price--the value determined for an
alternative price discovery period. The alternative projected price
may be determined by the insurer based on procedures specified in
the supplemental policy.
[0066] Current crop year--the crop currently growing or the crop
that has been most recently harvested.
[0067] Decision date--the last day by which the insured may elect
an alternative price discovery period.
[0068] Eligible County--a county identified as a county in which
the supplemental policy is offered.
[0069] Expected county yield--an estimate of the average yield
likely to be achieved by all producers in a county or Crop
Reporting District (CRD) for the crop year.
[0070] Final county yield--an estimate of the average yield
actually achieved by all producers in a county or CRD for the crop
year.
[0071] Harvest price--a harvest price as defined for the RP and the
GRIP (or successor) insurance plans.
[0072] Highest alternative projected price--the greatest value
determined among the alternative price discovery periods selected
by the insured, but not greater than the maximum price movement
amount selected by the insured plus the projected price.
[0073] Insured acres--the number of net planted acres for the crop
year that are not disallowed by the "Insured Crops and Acreage"
section of the supplemental policy and that are greater than or
equal to the minimum number of net acres, but less than or equal to
the maximum number of net acres insured under the supplemental
policy.
[0074] Liability adjustment factor--the percentage of any indemnity
that the insured selects. For example, if the insured would have
been entitled to an indemnity of $10 per acre under the
supplemental policy but the insured chose a liability adjustment
factor of 75%, the insured may receive an indemnity of $7.50 per
acre. The insured may choose an offered liability adjustment factor
(e.g., between 50% and 150% in ten percentage point
increments).
[0075] Maximum price movement amount--a value chosen by the insured
that limits the dollar amount by which the highest alternative
projected price can exceed the projected price released by RMA. The
maximum price movement amount may be less than or equal to maximum
specific limits.
[0076] MPCI policy--any plan of insurance offered on the crop that
is reinsured by the Federal Crop Insurance Corporation.
[0077] Net acres--the result of multiplying the planted acreage
insured under the supplemental policy by the insured's share in the
income or production from those acres.
[0078] Policy Protection Adjustment Factor--the term as defined in
Group Risk Income Protection Plan--Harvest Revenue Option
Endorsement (or successors) as redefined in the section "Indemnity"
of the supplemental policy.
[0079] Price discovery--a process whereby the daily closing prices
on the commodity exchange stipulated in the Commodity Exchange
Price Provisions are summed for an alternative price discovery
period and then divided by the number of daily closing prices
included in the sum. All results may be rounded to whole cents
using the "5/4" rounding rule (e.g., $0.1250 rounds to $0.13 and
$0.1249 rounds to $0.12).
[0080] Projected price--the projected price as defined for the RP
insurance plan or the expected price as defined for the GRIP
insurance plan (or successors). The projected price may be the
projected price announced by RMA for the RP insurance policy and
the expected price announced by RMA for the GRIP insurance
policy.
[0081] Total acres--the sum of the net planted acres insured under
the supplemental policy.
[0082] Underwriting Guide--a document that contains specific
information about the supplemental policy. An underwriting guide
may be issued by the insurer.
Discussion of Certain Exemplary Embodiments
[0083] As discussed in more detail below, provided in some
embodiments are systems and methods for determining characteristics
for supplemental insurance policies, such as supplemental crop
and/or nursery insurance policies. In certain embodiments, systems
and methods employ financial engineering to provide users with
information such as insurance premium quotes and indemnity amounts.
Financial engineering may include the use of statics, simulations
and/or similar data to determine values for the various types of
information. In the context of crop insurance, for example,
financial engineering may include calculating the risk associated
with giving a grower an option to design his own coverage and
putting that coverage on top of the existing RMA coverage.
Financial engineering may enable real-time determinations of
premium quotes and/or indemnity amounts. For example, an insurance
agent may submit a set of premium parameters to an insurance
system, the system may employ financial engineering techniques
(e.g., use of futures market information) to determine a premium
amount, and the resulting premium amount may be provided to the
agent in real-time (e.g., within seconds or minutes of the
submission) to allow the agent to provide the client with a quote
almost instantly. A real-time quote may be valid for only a short
period of time and, thus, an agent may have to refresh the quote
before submitting a request to purchase the policy to ensure the
quote is still valid. Such a process may enable the premium quoting
and the indemnity estimation processes to be customized to the
needs of the insured while dynamically providing corresponding
pricing and indemnity information.
[0084] In some embodiments, a financial engineering system includes
a simulation processor that utilizes one or more of the following
to determine a premium for a policy: RMA premium rates, current
market price, implied volatility from options measured based on
sales of Puts and Calls for the commodity, the number of days prior
to the discovery of projected price, harvest price, the likelihood
that these prices may exceed any given additional month's price as
selected by the grower, and the likelihood than any outcome may
reach or exceed price movement limits.
[0085] In some embodiments, a supplemental insurance system is
capable of determining a supplemental insurance premium based on a
number of policy parameters. For example, the system may calculate
a premium for supplemental crop insurance based on identification
of the following policy parameters: a crop to be insured, an
estimate of the number of acres to be planted by type and practice
for the crop year, each production database for the insured crop,
an estimate of the anticipated actual yield by unit/type/practice
for the current crop year (e.g., if a production report is not
available), a coverage level elected for the supplemental policy,
an insurance plan elected for determining the right to an indemnity
(RP, GRIP, or successor plans) (and if the insured elects GRIP, the
percentage of the maximum amount of insurance elected), a liability
adjustment factor, one or more alternative price discovery periods,
and/or a maximum price movement limit.
[0086] In some embodiments, premium estimates are provided through
an interactive web-based agent portal. Such a portal may be
employed to help a producer/grower and/or an agent get a quote,
customize coverage, and even complete applications. A portal may
include for example, a user interface that prompts a user to enter
policy parameters, thereby facilitating collection of the policy
parameters needed for generating a quote. For example, a
supplemental policy information page may display a number of
interactive policy parameter fields that can be filled in by an
agent while he/she is talking with a prospective client (e.g., a
producer) that is interested in a supplemental policy (e.g., a
supplemental crop insurance policy). In some embodiments, the
system's ability to calculate a premium based on a set of policy
parameters enables the premium to be calculated and provided to the
agent and/or the prospective client almost instantly. For example,
upon the agent entering the policy parameters via the supplemental
policy information page, the system may process the policy
parameters to calculate a premium for the supplemental insurance
policy in a matter of seconds or minutes, and display the premium
to the agent. Such a system may, thus, enable an agent to acquire
policy information from a perspective client and provide an
estimated a premium for a supplemental policy while the agent is
"at the kitchen table" with the client.
[0087] In some embodiments, a supplemental insurance system is
capable of determining an estimated indemnity under a supplemental
insurance policy based on a number of loss parameters. For example,
the system may calculate an estimated indemnity for a loss under a
supplemental crop insurance policy based on existing policy terms
(e.g., the policy parameters used to generate the policy) along
with identification of some or all of the following loss
parameters: an indemnity paid under other insurance (RP, GRIP, or
successor plans), a production to count, a harvest price, a highest
projected price and/or a projected price. In some embodiments,
acquisition of the loss parameters is facilitated by a user
interface that prompts a user to enter the loss parameters. For
example, a supplemental policy indemnity information page may
display a number of interactive loss parameter fields that can be
filled in by an agent while he/she is talking with the insured. In
some embodiments, the system's ability to calculate an indemnity
based on a set of loss parameters enables the estimated indemnity
to be calculated and provided to the agent and/or the prospective
client almost instantly. For example, upon the agent submitting the
parameters via the supplemental policy indemnity information page,
the system may process the loss parameters to calculate an
estimated indemnity for the loss under the supplemental insurance
policy in a matter of seconds or minutes, and display the estimated
indemnity to the agent. Such a system, thus, may enable an agent to
acquire loss information from the insured and provide an estimated
indemnity for a loss under the supplemental insurance policy while
the agent is "at the kitchen table" with the client.
[0088] Although certain embodiments are described in the context of
supplemental crop insurance, the techniques described herein may be
employed in a variety of applications, such as Private Area Revenue
(PAR) Supplemental Insurance, Nursery Crop Insurance (e.g., Nursery
Hurricane Named Peril Supplemental Insurance, Nursery Production
Infrastructure Supplemental Insurance, and Nursery Grafted Fruit
Stock Supplemental Insurance), PRF Supplemental Insurance,
Customized Revenue Supplemental Insurance, Regional Top Up
Supplemental Insurance, Personal Yield Assurance Supplemental
Insurance, and County Yield Assurance Supplemental Insurance. For
example, an agent selling these types of coverage may gather policy
parameters from the insured, submit the policy parameters to an
insurance system via an interactive portal, the insurance system
may employ financial engineering techniques to generate a quote,
and the quote may be provided in real-time to the agent via the
portal. Similarly, an agent may gather loss parameters from the
insured for the respective coverage, submit the loss parameters to
an insurance system via an interactive portal, the insurance system
may determine an estimated indemnity, and the estimated indemnity
may be provided in real-time to the agent via the portal.
[0089] Crop Insurance Policies:
[0090] Crop insurance policies are typically purchased by
agricultural producers, including farmers, ranchers, and others to
protect themselves against either the loss of their crops due to
natural disasters, (e.g., hail, drought, and floods), or the loss
of revenue due to declines in the prices (e.g., declines in the
prices of agricultural commodities). Two general categories of crop
insurance include (1) crop-yield insurance and (2) crop-revenue
insurance. Two main classes of crop-yield insurance include (a)
crop-hail insurance and (b) Multi-peril crop insurance (MPCI).
Crop-hail insurance generally covers losses due to the occurrence
of hail storms. Multi-peril crop insurance (MPCI) covers losses
dues to multiple risks, and is typically not limited to one risk,
such as hail damage. Multi-peril crop insurance typically offers
coverage for hail, excessive rain, drought, insect or
bacteria-related diseases and/or the like in a combined package.
MPCI coverage is typically offered by a government insurer and
premiums are usually partially subsidized by the government. In the
United States, a subsidized multi-peril federal insurance program,
administered by the Risk Management Agency (RMA), is available to
most farmers. The RMA has been active in calculating the premiums
based on individual risk factors since 1996. Crop-revenue insurance
is based on deviation of farmer's revenues from the mean revenue.
Crop-revenue is typically calculated as the crop-yield multiplied
by the crop price. RMA uses the futures prices on planting and
harvest-times listed in the commodity exchange markets, to
determine the crop price. Estimated revenue for a farmer can be
determined by multiplying the farmer's average crop-yield (or
production) by the future (expected) price. Crop-revenue insurance
may cover a decline in price that occurs during the crop's growing
season, but not declines that may occur from one growing season to
another. In some instances, a crop-revenue insurance policy
includes a guarantee value that is the same as (or at least based
on) the estimated revenue, and pays an indemnity if the combination
of the actual revenue is less than the guarantee.
[0091] Private Area Revenue (PAR) Insurance Policies:
[0092] Private Area Revenue (PAR) is a non-reinsured supplemental
(NRS) product that may offer additional coverage for individual
MPCI policies by allowing producers to purchase additional coverage
for area level revenue risk that supplements the individual level
coverage they receive from an MPCI policy. Coverage may be offered
in "bands" that are defined by upper and lower coverage levels
selected by a grower. PAR is available in many counties and crop
reporting districts for: corn, cotton, grain sorghum soybeans, and
wheat. PAR may be available in two forms: the base policy, which
offers area coverage with the liability established on the
projected price, and the Optional Price Coverage, which offers area
coverage with the liability established on the greater of the
projected price or the harvest price.
[0093] The liability/amount of insurance may reside entirely
between the coverage levels. As an example, if Grower A is a corn
farmer in Champaign County, Ill., he buys RP coverage at the 75%
coverage level, he buys PAR for his corn and he selects 90% as the
upper coverage level, 75% as lower coverage level, Champaign County
has an Expected County Yield of 170 bu/ac and the Projected Price
is $5.88/bu, then the amount of Insurance is determined as
follows:
Coverage Band=90% Upper-75% Lower=15%
Expected Revenue=170.times.$5.88=$1,000/ac
[0094] Amount of insurance=15% Coverage Band.times.$1000/ac
Expected Revenue=$150/acre
[0095] If Champaign County, Ill. Yield is reported by NASS as 150
bu/ac. Harvest Price is reported by RMA at $5.70/bu, then:
Area revenue per acre=150 bu.times.$5.70=$855/ac; Trigger revenue
per acre=170 bu.times.$5.88.times.0.90=$900/ac;
Loss Factor=($900-$855)/$900=5%
Nominal Loss=$1000.times.5%=$50/ac
Indemnity=Min($150/ac, $50/ac)
[0096] Nursery Crop Insurance Policies:
[0097] a. Nursery Hurricane Named Peril Supplemental Insurance:
[0098] Nursery Hurricane Named Peril Supplemental may be additional
coverage placed on top of an underlying Nursery Insurance product.
Nursery Hurricane Named Peril Supplemental Coverage may allow
producers to target specific intervals of time when exposure to
hurricane risk is perceived to be greatest, increasing the value of
nursery coverage to the grower. It may provide the opportunity to
choose additional coverage for hurricane damage. Producers may be
able to add one or more hurricane risk periods for their underlying
nursery insurance policy and a higher price election for those
selections to establish the Nursery Hurricane Named Peril
Supplemental guarantee loss adjustment in the event of a
hurricane.
[0099] Hurricane Named Peril Nursery Supplemental coverage may
allow producers to target specific intervals of time when exposure
to hurricane risk is perceived to be greatest based on their
production schedule. Hurricane Named Peril Nursery Supplemental
coverage can provide protection for nursery crops in areas prone to
hurricane damage, thereby giving producers greater control over
their covered financial risk. It may allow growers to buy up their
liability for a limited period under which they face hurricane
risk, it may match coverage to grower perception of meaningful
risk, offering coverage where/when the grower thinks it is needed
most, it may incentivize participation in FCIC programs by
producers with very limited risk periods and it may incentivize
participation at higher buy-up levels to avoid a "donut hole" in
coverage. This can be a particularly valuable tool to sell to
growers who historically participated in the FCIC program, but have
dropped out based on perceived differences between the coverage
provided by the nursery policy and the coverage they feel they
need.
[0100] a. Nursery Production Infrastructure Supplemental
Insurance:
[0101] Nursery Production Infrastructure Supplemental Insurance may
have no impact on the liability or indemnity associated with an
underlying Nursery Insurance policy, producers can be afforded
greater independence to insure their high value production
resources (drip irrigation systems, automated cold protection,
shade cloth structures, glasshouses, etc.). Nursery Production
Infrastructure Coverage may provide producers expanded flexibility
in risk transfer by allowing them to choose insurance for multiple
production inputs that are essential to their business model.
Producers can add one or more input coverages to their underlying
Nursery Insurance policy. Producers can cover both product and
production risks, insuring the possibility to reopen a business
closed by a catastrophic weather event. Freedom to select capital
risks of concern is a potential benefit of the Nursery Production
Infrastructure Coverage program.
[0102] Nursery Production Infrastructure Supplemental Insurance
coverage may allow producers to insure the critical infrastructure
that may be damaged and/or lost to the same sorts of events that
damage inventories (e.g., drip irrigation systems, Ground Covers,
Shade Structures, Cold Damage Mitigation Systems). These production
infrastructures may not be covered well under casualty and property
insurance. It may incentivize participation in FCIC programs from
high-end producers with substantial capital investments. The
Nursery Production Infrastructure elements of the coverage can
address highly correlated losses. Coverage and loss determination
may be bundled with underlying nursery coverage, keeping complexity
down.
[0103] a. Nursery Grafted Fruit Stock Supplemental Insurance:
[0104] The Grafted Nursery (Food-stocks) Non-reinsured Supplemental
Insurance may provide producers expanded flexibility in electing
the value per plant for their nursery stock throughout the
production cycle, from rootstock, to graft to cutting back the
rootstock to aftercare, the value of the stock is in flux, and the
producer costs are constantly increasing. Food-stocks Non-reinsured
Supplemental Insurance may be a customizable non-reinsured
supplemental offering additional coverage for producers of grafted
fruit and nut nursery stocks. The Grafted Nursery Food-stocks
Non-reinsured Supplemental Insurance may be additional coverage
that is placed on top of the underlying Nursery Insurance product;
indemnity payments, like the premium payments, may be separate. A
producer may experience a loss that triggers an indemnity payment
from the underlying Nursery Insurance policy without receiving an
indemnity from Grafted Nursery Food-stocks Non-reinsured
Supplemental Insurance. Alternatively, a producer who does not
choose to buy-up the nursery coverage may experience a "doughnut
hole" before the Grafted Nursery Food-stocks Non-reinsured
Supplemental kicks in. The additional coverage producers purchase
through Grafted Nursery Food-stocks Non-reinsured Supplemental
Insurance may pay an indemnity in this instance, helping to offset
the financial losses suffered by the producer. Without the buy-up
protection from the underlying FCIC insurance, portions of the loss
may not be covered.
[0105] The Grafted Fruit Stock Nursery Supplemental Insurance
coverage may allow producers to insure the added value of grafted
stock, which RMA systemically undervalues. It may incentivize
participation from highly-qualified producers with relatively
limited risk periods, and incentivize participation at higher
buy-up levels to provide appropriate coverage blending the
subsidized and open market elements.
[0106] PRF Insurance Policies:
[0107] Pasture, Rangeland, and Forage (PRF) Supplemental Insurance
may offer producers coverage for both minimal and near total loss
scenarios. It may provide producers both top and bottom expansion
of the RMA Rainfall Index coverage, and may be fashioned to provide
producers risk management more congruent with their risk tolerance.
When a producer's rainfall index overestimates the potential for
grazing, the Under element of PRF-RI Over/Under Coverage may
indemnify losses of access to forage to recognize the catastrophic
loss; a grower may receive the full value of coverage if an index
value of less than 50 or some other value designated by the insured
is incurred. The Over element of PRF-RI Over/Under Coverage may
expand the coverage to accommodate producers with low risk
tolerance, offering 100% coverage level by interval.
[0108] Customized Revenue Insurance Policies:
[0109] Customized Revenue Insurance can be a companion product to
supplemental crop insurance. Customized Revenue may multiply the
producer's flexibility in revenue risk transfer by allowing even
more producer choices for creation of price discovery points. It
may be proposed for producers with extraordinary marketing
knowledge and understanding, providing virtually limitless
opportunities for risk transfer. It may be an exceedingly
customizable non-reinsured supplemental offering additional
coverage for Revenue Protection (RP) and Group Risk Income
Protection-Harvest Revenue Option (GRIP HRO) policies. The precise
alternatives for price discovery can be virtually limitless and may
be selected by the insurer.
[0110] Regional Top Up Insurance Policies:
[0111] Regional Top Up insurance can increase the producer's risk
management involvement by customizing the price discovery periods
for the individual MPCI and the supplemental policy offering area
revenue coverage. It may be provided for top producers interested
in additional control of their "buy-up" insurance product. It may
be an expansion of the highly customizable non-reinsured
supplemental to encourage top producer involvement in the selection
of their additional risk management opportunities. It may provide a
guarantee based on the interaction between the expected county
yield and the producer selected price discovery approach. When the
actual county yield, the projected price, or some combination of
the two, falls below the guarantee, the grower may receive an
indemnity regardless of their actual individual yield.
[0112] Personal Yield Assurance Insurance Policies:
[0113] Personal Yield Assurance Insurance may allow producers to
buy PAR-like area coverage backstopped by their individual MPCI
coverage. Coverage may be established based on selected area
expected yield and projected price in a band (upper and lower)
selected by the producer. When the producer receives an individual
MPCI indemnity, that indemnity may be counted against the Personal
Yield Assurance indemnity until the backstop indemnity reaches
zero. Personal Yield Assurance coverage may provide the producer
with area coverage and a higher probability of indemnity while
keeping the cost of coverage down.
[0114] Personal Yield Assurance Insurance Policies:
[0115] Personal Yield Assurance Insurance may provide a
supplemental policy for GRIP-HRO for producers who are eligible for
enterprise units. It may allow producers to buy individual yield
revenue coverage backstopped by their GRIP-HRO MPCI coverage. If
the Grower has a GRIP indemnity, it may be counted against any
County Yield Assurance (CYA) indemnity, reducing premium rates. It
may offer the inverse of coverage offered under area backstop. It
may be individual coverage that fits under an area MPCI plan rather
than area coverage that fits over an individual MPCI plan. Both
concepts may assure the grower the greater of an individual or area
indemnity.
[0116] Exemplary Embodiments of Supplemental Insurance
Policies:
[0117] In some embodiments, provided is a supplemental insurance
policy (e.g., a supplemental crop insurance policy) that includes a
non-reinsured supplemental (NRS) insurance product. The
supplemental policy may provide additional coverage on top of other
insurance policies. For example, the supplemental policy may
include revenue protection coverage that provides additional
coverage for other insurance policies, such as Revenue Protection
(RP) and Group Risk Income Protection-Harvest Revenue Option (GRIP)
policies. The supplemental policy coverage may be available for
various crops, including, for example, corn, cotton, soybeans, and
wheat. In some embodiments, the supplemental policy coverage allows
producers (e.g., farmers) to choose alternative price discovery
periods, including, for example, selecting periods before and after
the period defined by the Commodity Exchange Price Provisions
(CEPP). An alternative price discovery period may be longer or
shorter than those established by the CEPP. The highest projected
price for these alternative price discovery periods, as determined
by the insurer, can be used to establish the revenue guarantee for
loss purposes if that price exceeds the projected and harvest
prices released by RMA. Otherwise, the liability of the
supplemental crop insurance revenue protection coverage may be
zero. That is, no indemnity may result from the supplemental policy
revenue protection coverage. In some instances, these options may
have no impact on the liability or indemnity for the federally
reinsured RP or GRIP coverage. That is, the liability for RP and
GRIP may continue to be set on the basis of the price discovery
periods defined by the CEPP.
[0118] The supplemental policy may allow the producer to choose
price discovery periods before and after the period defined by the
CEPP. The liability for the supplemental policy may vary based on
liability of other insurance policies. For example, the liability
for the coverage as it relates to RP may be the positive difference
between the supplemental policy revenue protection coverage
liability price (the highest of the producer's selected discovery
period values) and the RP liability price multiplied by the
producer's expected yield multiplied by a chosen coverage level.
The liability for the supplemental policy revenue protection
coverage as it relates to GRIP may be the positive difference
between the amount of policy protection using the supplemental crop
insurance revenue protection coverage price (the highest of the
producer's selected discovery period values) and the GRIP liability
price. The projected and harvest prices established under CEPP may
be greater than any of the prices selected by the producer under
supplemental policy revenue protection coverage. In this situation,
the premium may still be due, but no indemnity will be paid under
the supplemental policy revenue protection coverage. In some
instances, although the supplemental policy revenue protection
coverage price is higher than the projected or harvest prices
established under the CEPP, no indemnity may be owed because the
value of the production to count exceeds the revised revenue
guarantee. In some instances, the supplemental policy revenue
protection coverage is available in certain locations and/or
closing dates. For example, for the 2013 crop year, the
supplemental policy revenue protection coverage may be available
for corn, cotton, soybeans, and wheat in all counties where there
are either GRIP or RP offers for spring sales closing dates. In
some instances, the supplemental policy revenue protection coverage
imposes a limit on the difference in price between the highest
supplemental policy revenue protection coverage additional price
discovery price designated and the price determined by the CEPP.
These limits may be, for example, $1.50/bu. for corn, $0.25/lb. for
cotton, $1.50/bu. for grain sorghum. $2.00/bu. for wheat, and
$3.00/bu. for soybeans. In some embodiments, producers may choose
from several options for price caps that are less than these policy
limits.
[0119] A supplemental policy may provide the insured with an
opportunity to effectively "lock" a potentially higher revenue
protection guarantee than the level established under the RP
insurance policy) or the policy protection under the GRIP insurance
policy (the terms "revenue protection guarantee" and "policy
protection" will be referenced collectively as "revenue protection"
unless specified otherwise). However, if the projected price
determined for any selected alternative price discovery period (the
"alternative projected price") is not higher than either the
projected price or the harvest price (e.g., announced by RMA), the
insured may not have any rights to a payment under the supplemental
policy, but may still owe the determined premium for the
supplemental policy.
[0120] In some embodiments, the insured must select either the RP
or the GRIP insurance plan reinsured by FCIC on the insured crop
when they apply for the policy (e.g., when they choose their first
alternative price discovery period). The manner in which any
indemnity is calculated may be based on the plan that is selected.
The insured may be required to purchase a MPCI insurance policy for
the crop to be insured to establish insurable interest, but they
may not be required to buy it from the insurer. In some
embodiments, failure to purchase any MPCI insurance coverage on or
before the sales closing date established by RMA may result in
cancellation of the supplemental policy for the crop year, but the
insured may still owe the determined premium determined premium for
the supplemental policy.
[0121] Insured Crops and Acreage:
[0122] The insured may choose the supplemental policy for any crop
for which coverage is offered in their county. All types and
practices for which the RP or GRIP insurance plans are offered in
an eligible county may be insurable under the supplemental policy.
High Risk or some specialty types may be excluded as specified in
the policy. In the case of organic types, or any other type for
which the projected and harvest prices are derived from the CEPP
projected and harvest prices, the same adjustment factors as used
by RMA may be applied to the prices determined during an
alternative price discovery period.
[0123] The insured may not be allowed to insure more planted
acreage than they reported for the MPCI insurance plan, and all
planted acreage in the county may be required to be reported as
insurable under the supplemental policy except, for example, the
following:
[0124] (1) any acreage for which a prevented planting payment was
claimed;
[0125] (2) for corn, acreage insured as the silage type;
[0126] (3) any acreage designated as "High Risk Land";
[0127] (4) any acreage insured under a written agreement; and
[0128] (5) any acreage that would be uninsurable under the terms of
the MPCI policy.
[0129] In some embodiments, the insured is required to provide the
insurer with an acreage report separate from the acreage report
that the insured files for the MPCI policy that they purchased. In
some instances, an application to ensure less than fifty net acres
will be rejected.
[0130] When the insured selects an alternative price discovery
period, the insured may be required to provide the following to the
insurer: [0131] (a) the insured's estimate of the intended planted
acres of the crop in the county for the crop year for each type and
practice (the insured's estimate may be required to be at least
fifty net acres and may not be greater than the net acres the
insured has insured under any MPCI policy for the crop in any one
of the most recent four calendar years. The insurer may require the
insured to provide evidence to support the insured's estimate);
[0132] (b) the complete production history for all APH databases
whether planted or not planted for the current crop year; [0133]
(c) the anticipated actual yield for all insured units for the
current crop year if the final production is not yet known; [0134]
(d) the coverage level the insured elects for the supplemental
policy (this may be required to be a value between fifty percent
and eighty-five percent in five percentage point increments);
[0135] (e) the MPCI policy (RP or GRIP) the insured
selects/designates to use to determine any indemnity under the
supplemental policy; [0136] (f) if the insured elects GRIP, the
percentage of the maximum amount of insurance the insured elects;
[0137] (g) the insured's selected maximum price movement amount;
and [0138] (h) the insured's selected liability adjustment
factor.
[0139] The insured may be required to provide the insurer with the
actual production and insured acres for the current crop year by
type and practice and by unit not later than a given period of
time, e.g., 30 days, after the earlier of the date the insured
completes harvesting for the current crop year or the end of the
insurance period for the RP insurance policy in the insured's
county.
[0140] The insured's selection/designation of the MPCI policy (RP
or GRIP) may be used to determine any indemnity under the policy,
but may not obligate the insured to purchase that specific policy.
The insurer may use the information to determine the amount of any
indemnity to which the insured may be entitled under the
supplemental policy and/or to calculate the amount of premium that
the insured owes for the supplemental policy in the event the
insured does not have acreage insured under a MPCI policy. The
insured may be required to provide the insurer with the data needed
to determine the applicable MPCI indemnity irrespective of the
insured's choices of the MPCI coverage. For example, if the insured
elects to use the RP insurance plan as the basis of their coverage
under the supplemental policy but purchased the GRIP insurance plan
for their MPCI insurance coverage for the crop year, the insured
may be required to provide the insurer with complete production
reports for the types and practices of the insured crop the insured
planted for the crop year. The insured's failure to provide the
required information may result in a determination that no
indemnity is due under the policy
[0141] Limitations on Liability:
[0142] In some instances, the insurer may reserve the right to
refuse liability or to restrict the amount of liability that they
will accept in any county for any crop due to capacity constraints
that affect their ability to accept liability. The insured may be
notified in writing on or before a decision date if such refusal or
restriction will apply to further sales. The insurer may also limit
the amount of liability they will assume for prices of alternative
price discovery periods that exceed the projected price released by
RMA. The maximum specific limits may be, for example, the
following: corn, $1.50 per bushel; cotton, $0.25 per pound; grain
sorghum, $1.50 per bushel; soybeans, $3.00 per bushel; and wheat,
$2.00 per bushel. The insurer may, at their option, reduce the
maximum specific limits to satisfy capacity constraints. The
insured may select a maximum price movement amount that is less
than or equal to the maximum specified limit for a crop from among
the choices the insurer provide to the insured.
[0143] The insurer may suspend or restrict sales if trading on the
applicable futures exchange is disrupted by events such as movement
of prices by the maximum amount allowable by the exchange that
prevents trading at the end of a session, or there is lack of
trading.
[0144] Right to Purchase the Supplemental Policy and
Cancellation:
[0145] The insured may be required to purchase the supplemental
policy by agreeing in writing on or before the sales closing date
for the RP or GRIP insurance policy for the crop in their county.
Sales of the supplemental policy for a crop year may not be allowed
after the sales closing date for the RP or GRIP insurance policy. A
new application may be required for each crop year. A separate
application for each sales closing date may be required if the
insured wish to insure acreage in a county with two sales closing
dates for a crop. The insured's application may not be accepted if
they have not paid premium to the insurer for a prior crop year for
any crop insurance policy they have purchased from the insurer.
[0146] The insured may be required to elect at least one
alternative price discovery period for the crop year when they make
application for the supplemental policy. The application may become
part of the supplemental policy. Insurance may attach for all
alternative price discovery periods the insured has selected and
all premiums for such alternative price discovery periods may be
earned by the insured. The insured may cancel coverage for any
alternative price discovery period they have selected in accordance
with the section "Provision and Acceptance of Offers for
Alternative Price Discovery Periods."
[0147] The insured may cancel the supplemental policy with respect
to all future alternative price discovery periods that they have
not previously elected by returning the original supplemental
policy to the insured or by providing written notice to the
insured. Such cancellation may be effective on the later of the
date the returned policy or written request is received by the
insurer, our duly authorized agent, or the date the insured
specifies in the written request. The insured may owe the premium
for any alternative price discovery period for which a premium has
been determined.
[0148] The insurer may cancel the supplemental policy for
non-payment of the premium of if they find that the insured has
materially misrepresented any facts (e.g., by giving the insured
written notice by mail at least ten days prior to the effective
date of such cancellation if the supplemental policy has been in
effect for fewer than sixty days, or not later than forty-five days
prior to the effective date of such cancellation if the
supplemental policy has been in effect for sixty days or more).
Cancellation may not waive the insured's obligation to pay any
premium that is owed. The insured may be required to repay any
indemnity if the insurer cancels the supplemental policy due to the
insured's material misrepresentation. A material misrepresentation
may be deemed to have occurred if the information the insured
provides to the insurer results in payment of an indemnity greater
than 105% of the amount which the insurer determines the insured
was entitled to receive.
[0149] The insured may be allowed to select any alternative price
discovery period which the insurer offers on any specific date. The
alternative price discovery periods offered by the insurer may be
limited by the insurer's ability to obtain the information needed
to establish a premium rate. The insured may not be allowed to
select an alternative price discovery period until the insurer is
able to establish a premium rate. Alternative price discovery
periods may be offered for multiple future crop years. The incurred
may be required to make application for that future crop year to be
eligible to select those alternative price discovery periods.
[0150] Right to Choose MPCI Insurance Plan and Coverage Level:
[0151] The supplemental policy may not restrict or infringe on the
insured's rights under the MPCI insurance program. The insured may
be allowed to choose any available insurance plan, coverage level,
or other aspect of the MPCI insurance program that is offered to
them. Failure to have a MPCI insurance policy in effect for the
crop year or failure to plant the crop may result in no indemnity
being due under the supplemental policy because the insured will be
deemed to have no insurable interest, however, the insured may
still be required to pay the premium owed for the alternative price
discovery periods they have selected (e.g., to pay the required
premium in accordance with the terms of the supplemental policy).
The insured may be required to provide the insurer with evidence
that the insured has a MPCI insurance policy in effect for the crop
year on or before the acreage reporting date, which will be the
date applicable to the MPCI insurance policy the insured has
designated for the insurer to use for the purpose of determining
any indemnity under the supplemental policy.
[0152] Insurance Period:
[0153] The supplemental policy may attach for a crop year on the
first day of the first alternative price discovery period selected
by the insured. The supplemental policy may end for a crop year
with respect to the RP insurance policy on the date RMA announces
or publishes the harvest price applicable to the crop in the
insured's county. The supplemental policy may end for a crop year
with respect to the GRIP insurance policy on the date RMA announces
or publishes the county revenue.
[0154] Alternative Price Discovery Periods:
[0155] The insured may be required to select at least one
alternative price discovery period when they apply for the
supplemental policy. The insured may be allowed to select
additional alternative price discovery periods at that time or
until the MPCI sales closing date applicable to the crop included
in the insured's application for the supplemental policy. The
insured may be required to advise the insurer of their selection(s)
in writing on or before the decision date of each alternative price
discovery period that the insured elects. Alternative price
discovery periods may be defined using a premium quoting tool
(e.g., a supplemental crop insurance quoting page/application as
described herein). In some instances, only alternative price
discovery periods available for selection in the premium quoting
tool are offered for purchase.
[0156] Insurance Guarantees and Coverage Levels:
[0157] The supplemental policy may compensate the insured for their
insured portion of the difference in any indemnity payable with the
highest alternative projected price and the indemnity payable to
the insured under the MPCI insurance plan designated for the acres
insured under the supplemental policy. If either the projected
price or the harvest price announced or published by RMA exceeds
the insured's highest alternative projected price, no indemnity may
be payable under the supplemental policy.
[0158] The number of insured acres may be established from the
acreage report the insured files for the supplemental policy. The
coverage level for the supplemental policy may be specified by the
insured. The approved yields may be the approved yields applicable
to the RP insurance plan. For the GRIP insurance plan, the insurer
may increase the insured's policy protection and trigger revenue as
described with regard to indemnity. In some instances, the
supplemental policy may be restricted to a minimum and/or maximum
size.
[0159] Premium:
[0160] A premium amount per acre may be determined for each type
and practice at the time the insured selects the insured's
alternative price discovery periods. The premium may be based on
the insured's approved yield for the type and practice for the RP
insurance plan or the expected county yield for the type and
practice for the GRIP insurance plan. The annual premium, if the
insured has designated the RP insurance plan, may be determined for
each type and practice using the following steps: [0161] 1. Summing
the premium amount per acre for the insured's selected coverage
level for all alternative price discovery periods they have
elected; [0162] 2. Multiplying the result of step 1 by the
liability adjustment factor the insured has selected; and [0163] 3.
Multiplying the result of step 2 by the number of insured acres,
and by the insured's share.
[0164] The annual premium, if the insured has designated the GRIP
insurance plan, may be determined using the following steps: [0165]
1. Summing the premium amounts per acre for the insured's selected
coverage level for all alternative price discovery periods they
have elected; [0166] 2. Multiplying the result of step 1 by the
percentage represented by the protection per acre the insured has
selected, and by the liability adjustment factor the insured has
selected; and [0167] 3. Multiplying the result of step 2 by the
number of insured acres and by the insured's share.
[0168] The total premium may be the sum of the premium amounts for
all types and practices the insured planted.
[0169] If the insured fails to purchase MPCI insurance coverage,
the insurer may use the following to calculate the amount of
premium that the insured owes:
[0170] For the RP insurance plan: [0171] 1. The insurer will sum
the premium amounts per acre for the insured's select coverage
level for all alternative price discovery periods they have
elected; [0172] 2. The intended acreage the insured declared;
[0173] 3. 100% share; [0174] 4. The crop's maximum price movement
limit; and [0175] 5. 100% liability adjustment factor.
[0176] For the GRIP insurance plan: [0177] 1. Protection per acre
equivalent to 70% of the maximum protection per acre; [0178] 2. The
expected county yield; [0179] 3. The greater of the current crop
year acreage planted to the crop or the intended acreage the
insured declared; [0180] 4. The crop's maximum price movement
limit; [0181] 5. 100% liability adjustment factor; and [0182] 6.
100% share.
[0183] The insured may be billed for the premium on a given date,
e.g., November 1.sup.st of the crop year. The insured may be
required to pay their premium not later than a given time period,
e.g., 30 calendar days, after the date they are billed to avoid
interest charges. Interest may be charged at a given rate, e.g.,
1.25% simple interest, per calendar month or any portion thereof on
unpaid balances. The amount of any unpaid premium may be offset
from any indemnity owed to the insured.
[0184] Provision and Acceptance of Offers for Alternative Price
Discovery Periods:
[0185] The premium rates per acre for the insurer's offers may be
based in part on the information the insured has provided to the
insurer. Some information the insured provides to the insurer may
rely on expectations of final yields by unit for the current crop
year. The insurer's quoted premium rates may be considered
provisional until the final production and acreage for the current
crop year are provided by the insured. After the insured provides
these final results to the insurer, the insurer may notify the
insured of the final premium rate applicable for the alternative
price discovery period. The insurer may accept the provisional
premium rate/amount if the approved yield and rate yield for a type
and practice does not increase or decrease by more than a given
percentage, e.g., 2%. The insured may have the right to cancel the
supplemental policy for an alternative price discovery period if
the final premium rate the insurer quotes to the insured is more
than a given percentage, e.g., 10%, higher than the initial quoted
premium amount. If the insured does not accept the final premium
amount, they may be required to advise the insurer in writing not
later than ten calendar days after the insurer notifies the insured
of the premium rate/amount. The insurer's offer may be considered
final if the insured does not provide the required production and
acreage information to the insurer by the earlier of a given
period, e.g., 30 days, after the insured completes harvesting or
the calendar date for the end of insurance period for the current
crop year for the RP insurance plan. The insured may still owe the
premium to the insurer.
[0186] The insured's agent may not have the authority to bind the
insurer for coverage. Coverage may attach upon the insurer's
notification to the insured that the insured's request for
insurance for an alternative price discovery period has been
accepted by the insurer. Notification may be made by electronic
means to the insured's agent and/or to the insured, e.g., via
electronic mail ("e-mail").
[0187] Notices:
[0188] The insured may be required to notify the insurer of the
amount of any indemnity the insured has received under the MPCI
insurance program. In addition, for the RP insurance plan, the
insured may be required to provide the insurer a notice of loss if
the insured anticipates any loss under the supplemental policy and
with the production to count (production report) from each unit.
Failure to provide notice and any required data may result in
denial of the insured's claim. If the insured specifies the GRIP
plan for the supplemental policy, the insured may not be required
to meet any notice requirements.
[0189] Indemnity:
[0190] Any indemnity owed to the insured may be paid by the insurer
within a given period, e.g., 30 days, after the insured has
provided the required information and the insurer reaches agreement
with the insured on the amount of any indemnity due for the RP
insurance plan or within a given period, e.g., 30 days, after RMA
releases the county revenue for the GRIP insurance plan. In
addition, the insured may be required to provide the insurer with a
completed IRS Form, e.g., IRS W-9 "Request for Taxpayer
Identification Number and Certification," before any indemnity is
to be paid.
[0191] The insurer may employ the following steps to determine the
amount of any indemnity due to the insured under the supplemental
policy for the RP insurance plan: [0192] 1. Determine if the
highest alternative projected price exceeds the projected price or
harvest price established by RMA. If it does not, no indemnity may
be due and no further calculations may be necessary. [0193] 2.
Multiply the approved yield for each type and practice by the
coverage level and round the result to the nearest tenth of a
bushel or the nearest whole pound, as appropriate; [0194] 3.
Multiply each result of step 2 by the highest projected price
(subject to the maximum price movement limit selected by the
insured) and round the result to the nearest whole dollar; [0195]
4. Multiply each result of step 3 by the applicable number of
insured acres; [0196] 5. Sum all results of step 4; [0197] 6.
Multiply the production to count of each type and practice by the
harvest price; [0198] 7. Sum the results of step 6; [0199] 8.
Subtract the result of step 7 from the result of step 5; [0200] 9.
Multiply the result of step 8 by the insured's share; [0201] 10.
Determine the amount of any indemnity that would be payable to the
insured under the RP insurance plan on the acres insured under the
supplemental policy with all acres insured as a single unit and the
coverage level the insured chose for the supplemental policy;
[0202] 11. Subtract the result of step 10 from the result of step
9; and [0203] 12. Multiply the result of step 11 by the liability
adjustment factor.
[0204] The insurer may employ the following steps to determine the
amount of any indemnity due to the insured under the supplemental
policy for the GRIP insurance plan: [0205] 1. Determine if the
highest alternative projected price exceeds the projected price or
harvest price established by RMA. If it does not, no indemnity may
be due and no further calculations may be necessary. [0206] 2.
Determine the supplemental policy Protection Adjustment Factor as
the greater of 1.00 or the ratio of the highest alternative
projected price to the RMA expected price; [0207] 3. Multiply the
policy protection for each type and practice elected by the insured
by the result of step 2; [0208] 4. Determine the trigger revenue
for each type and practice as the product of the expected county
yield, the highest projected price (subject to the maximum price
movement limit selected by the insured), and the coverage level
selected by the insured; [0209] 5. Subtract the county revenue from
the result of step 4 and divide that result by the result of step 4
for each type and practice; [0210] 6. Multiply the result of step 3
for each type and practice by the result of step 5, the number of
insured acres, and by the insured's share; [0211] 7. Sum the
results of step 6; [0212] 8. Determine the amount of any indemnity
that would be payable to the insured for each type and practice
under the GRIP insurance plan with the coverage level and percent
of the maximum amount of insurance the insured chose for the
supplemental policy; [0213] 9. Sum the results of step 8; [0214]
10. Subtract the result of step 9 from the result of step 7; and
[0215] 11. Multiply the result of step 10 by the liability
adjustment factor.
[0216] Limit on Amount of Indemnity:
[0217] The amount of any indemnity payable to the insured by the
insurer for the RP insurance plan may not be allowed to cause the
total crop value to exceed the amount determined by multiplying
each approved yield by the highest alternative projected price,
number of insured acres, and the insured's share, and summing those
results. If the sum of the insured's share of the value of
production to count, any indemnity paid to the insured under the
MPCI insurance program, and the amount of the insurer's indemnity
is greater than this total value, the insurer's indemnity may be
reduced accordingly.
[0218] The amount of any indemnity payable to the insured by the
insurer for the GRIP insurance plan may not be allowed to cause the
total crop value to exceed the amount determined by multiplying the
maximum protection per acre for each type and practice by the
number of insured acres and the insured's share, and summing those
results. If the final county yield for each type and practice
multiplied by the highest alternative projected price, the insured
acres, and the insured's share, plus any indemnity paid to the
insured under the MPCI insurance program, plus the amount of the
insurer's indemnity is greater than this value, the insurer's
indemnity may be reduced accordingly.
[0219] Exemplary Premium And Indemnity Calculations:
[0220] The following provides an exemplary listing of crops,
states, and counties for which a supplemental policy may be
offered. [0221] Corn: All states and counties where RP and GRIP-HRO
insurance plans are offered. [0222] Cotton: All states and counties
where RP and GRIP-HRO insurance plans are offered. [0223] Grain
Sorghum All states and counties where RP and/or GRIP-HRO insurance
plans are offered. [0224] Soybeans: All states and counties where
RP and GRIP-HRO insurance plans are offered. [0225] Wheat: All
states and counties where RP and GRIP-HRO insurance plans are
offered.
[0226] Additional crops and regions may be offered. Producers may
purchase coverage in all states and counties for which they are
eligible for MPCI coverage and for which there is an offer in the
premium quotation tool (e.g., a supplemental crop insurance quoting
page/application as described herein).
[0227] The following provides an exemplary listing of alternative
price discovery periods for the 2013 crop year. It will be
appreciated that these listings of alternative price discovery
periods are exemplary, and are provided for the purpose of
illustration. These periods are not intended to limit the scope of
the invention. Embodiments may include any suitable period(s) to
accommodate relevant circumstances.
TABLE-US-00001 TABLE 1 Jan. 31, 2013 Sales Closing Date for Corn,
Cotton, and Soybeans Period Number Alternative Price Discovery
Periods 1 Aug. 15-Sep. 14, 2012 2 Sep. 15-Oct. 14, 2012 3 Oct.
15-Nov. 14, 2012 4 Nov. 15-Dec. 14, 2012 CEPP Projected Price
Period Dec. 15-Jan. 14, 2013 5 Jan. 15-Feb. 14, 2013 6 Feb. 15-Mar.
14, 2013 7 Mar. 15-Apr. 14, 2013 8 Apr. 15-May 14, 2013 9 May
15-Jun. 14, 2013
TABLE-US-00002 TABLE 2 Feb. 15, 2013 Sales Closing Date for Corn
Period Number Alternative Price Discovery Periods 1 Sep. 1-Sep. 30,
2012 2 Oct. 1-Oct. 31, 2012 3 Nov. 1-Nov. 30, 2012 4 Dec. 1-Dec.
31, 2012 CEPP Projected Price Period Jan. 1-Jan. 31, 2013 5 Feb.
1-Feb. 28, 2013 6 Mar. 1-Mar. 31, 2013 7 Apr. 1-Apr. 30, 2013 8 May
1-May 31, 2013 9 Jun. 1-Jun. 30, 2013
TABLE-US-00003 TABLE 3 Feb. 28, 2013 Sales Closing Date for Corn,
Cotton, and Soybeans Period Number Alternative Price Discovery
Periods 1 Aug. 15-Sep. 14, 2012 2 Sep. 15-Oct. 14, 2012 3 Oct.
15-Nov. 14, 2012 4 Nov. 15-Dec. 14, 2012 5 Dec. 15-Jan. 14, 2013
CEPP Projected Price Period Jan. 15-Feb. 14, 2013 6 Feb. 15-Mar.
14, 2013 7 Mar. 15-Apr. 14, 2013 8 Apr. 15-May 14, 2013 9 May
15-Jun. 14, 2013
TABLE-US-00004 TABLE 4 Mar. 15, 2013 Sales Closing Date for Corn,
Cotton, Soybeans, and Wheat Period Number Alternative Price
Discovery Periods 1 Sep. 1-Sep. 30, 2012 2 Oct. 1-Oct. 31, 2012 3
Nov. 1-Nov. 30, 2012 4 Dec. 1-Dec. 31, 2012 5 Jan. 1-Jan. 31, 2013
CEPP Projected Price Period Feb. 1-Feb. 28, 2013 6 Mar. 1-Mar. 31,
2013 7 Apr. 1-Apr. 30, 2013 8 May 1-May 31, 2013 9 Jun. 1-Jun. 30,
2013
[0228] Exemplary Calculations of Premium:
[0229] Premium may be stated as a dollar rate per acre insured. In
an exemplary embodiment, assume that the insured selects two
alternative price discovery periods for the March 15 sales closing
date: December 1 to December 31 and April 1 to April 30. The
insured selected 80% coverage, the RP insurance plan at the first
alternative price discovery period, a $0.25 maximum price movement
limit, and a liability adjustment factor equal to 60%. The premium
rates for these alternative price discovery periods are $2.34 per
acre (the premium rates reflect the maximum price movement limit
chosen by the insured). The approved yield is 150 bushels per acre
and a rate yield of 144 bushels per acre. The acreage report
includes 1,000 planted acres that is consistent with the definition
of insured acres and reported at a 100% share (premium amounts are
illustrative only and are not intended to indicate the relative
magnitude of actual premiums determined for the supplemental
policy). Finally, assume that there is one insured type and
practice.
[0230] In this instance, the premium amount may be calculated as
follows: [0231] 1. $2.34.times.1,000 acres.times.1.000
share=$2,340. Thus, the premium is determined to be $2,340
[0232] Alternatively, assume that the insured selected the GRIP
insurance plan, chose 80% of the maximum protection per acre, $0.25
maximum price movement limit, and a liability adjustment factor of
60%. The expected county yield is 140 bushels per acre. Finally,
assume that all other parameters are the same as in the previous
example. [0233] 1. Quoted Rate=$6.83 per acre; [0234] 2.
$6.83.times.0.80.times.0.60=$3.28 per acre; and [0235] 3. $3.28 per
acre.times.1,000 acres.times.1.000 share=$3,280. Thus, the premium
is determined to be $3,280.
[0236] Exemplary Calculations of Indemnity:
[0237] In an exemplary embodiment, assume the projected prices for
the alternative price discovery periods as determined by the
insurer are as follows: [0238] December 1-December 31=$5.25 per
bushel [0239] February 1-February 28/29=$5.40 per bushel [0240]
April 1-April 30=$5.50 per bushel
[0241] The projected price for the February 1-February 28/29 period
may be the determination made under the CEPP, and the insured is
entitled to this value with no additional premium. The highest
projected price for these three periods is $5.50 per bushel.
[0242] Exemplary Calculations of Indemnity for the RP Insurance
Plan:
[0243] Exemplary Situation 1: RMA announces the harvest price is
$5.60 per bushel. Following the steps shown in the supplemental
policy, any indemnity may be determined as follows: [0244] 1. $5.60
harvest price is greater than $5.50 highest projected price. No
further calculations are necessary. No indemnity is payable under
the supplemental policy.
[0245] Exemplary Situation 2: RMA announces the harvest price is
$5.25 per bushel. The indemnity payable for the RP insurance plan
is $123,000. Following 12 steps defined by the supplemental policy
provisions, any indemnity may be determined as follows: [0246] 1.
Determine if the highest alternative projected price exceeds the
projected price or harvest price established by RMA. If it does
not, no indemnity is due and no further calculations are necessary.
[0247] $5.50 highest projected price is greater than the greater of
the projected and harvest price ($5.40) and is less than the
maximum price movement limit ($5.65). Thus, an indemnity may be
payable.
[0248] Situation 2a: Assume the production to count is 100,000
bushels. The indemnity owed for the supplemental policy may be
determined using the as follows: [0249] 2. Multiply the approved
yield for each type and practice by the coverage level and round
the result to the nearest tenth of a bushel or the nearest whole
pound, as appropriate [0250] 150 bushels.times.0.80=120.0 bushels;
[0251] 3. Multiply each result of step 2 by the highest projected
price (subject to the maximum price movement limit selected by the
insured) and round the result to the nearest whole dollar [0252]
120.0 bushels.times.$5.50 highest projected price=$660; [0253] 4.
Multiply each result of step 3 by the applicable number of insured
acres [0254] $660.times.1,000 acres=$660,000; [0255] 5. Sum all
results of step 4 [0256] .SIGMA.=$660,000; [0257] 6. Multiply the
production to count of each type and practice by the harvest price
[0258] 100,000 bushels.times.$5.25=$525,000; [0259] 7. Sum the
results of step 6 [0260] .SIGMA.=$525,000; [0261] 8. Subtract the
result of step 7 from the result of step 5 [0262]
$660,000-$525,000=$135,000; [0263] 9. Multiply the result of step 8
by the insured's share [0264] $135,000.times.1.000 share=$135,000;
[0265] 10. Determine the amount of any indemnity that would be
payable to the insured under the RP insurance plan on the acres
insured under the supplemental policy with all acres insured as a
single unit and the coverage level the insured chose for the
supplemental policy [0266] $123,000; [0267] 11. Subtract the result
of step 10 from the result of step 9 [0268]
$135,000-$123,000=$12,000; and [0269] 12. Multiply the result of
step 11 by the liability adjustment factor [0270]
$12,000.times.0.60=$7,200. Thus, the indemnity for the supplemental
policy is determined to be $7,200.
[0271] Exemplary calculations underlying the effect of limits on
the amount of indemnity may be illustrated, as follows:
Total value of crop=150 bu..times.1,000
acres.times.$5.50=$825,000;
Value of production to count=100,000 bu..times.$5.50=$550,000;
Value of MPCI indemnity=$123,000;
Value of the supplemental policy indemnity=$7,200
$550,000+$123,000+$7,200=$680,200
[0272] The indemnity may not be limited as the total value of the
crop exceeds the total value of production to count and all
indemnities received.
[0273] Situation 2b: Assuming the production to count is 123,500
bushels. No indemnity is owed for the RP insurance plan because the
value of the production to count exceeds the revenue guarantee by
$112. The indemnity owed for the supplemental policy may be
determined as follows using steps similar to those outlined in
situation 2a: [0274] 2. 150 bushels.times.0.80=120.0 bushels;
[0275] 3. 120.0.times.$5.50 highest projected price=$660; [0276] 4.
$660.times.1,000 acres=$660,000; [0277] 5. .SIGMA.=$660,000; [0278]
6. 123,500 bushels.times.$5.25=$648,375; [0279] 7. .SIGMA.=$648,375
[0280] 8. $660,000-$648,375=$11,625; [0281] 9. $11,625.times.1.000
share=$11,625; [0282] 10. $0 [0283] 11. $11,625-$0=$11,625; and
[0284] 12. $11,625.times.0.60=$6,975. Thus, the indemnity for the
supplemental policy is determined to be $6,975. However, if the
production to count had exceeded 125,714.28 bushels, no indemnity
would have been payable under the supplemental policy despite the
fact that the highest alternative price exceeded both the projected
and harvest price.
[0285] Situation 3: Assuming the highest alternative projected
price from April was $5.80/bu. The RMA projected price was $5.40
and the RMA harvest price was $5.25. Based on the producer's
selected maximum price movement limit of $0.25/bu, the highest
projected price is restated as the higher of the RMA projected and
harvest prices plus the producer's selected price movement limit.
[0286] 1. Highest projected price is restated as $5.40+$0.25=$5.65.
As the $5.65 (adjusted) highest projected price is greater than the
greater of the projected and harvest prices ($5.40), an indemnity
may be payable.
[0287] Assuming the production to count is 100,000 bushels. The
indemnity payable for the RP insurance plan is $123,000. The
indemnity owed for the supplemental policy may be determined as
follows using steps similar to those outlined in situation 2a:
[0288] 2. 150 bushels.times.0.80=120.0 bushels; [0289] 3. 120.0
bushels.times.$5.65 highest projected price=$678; [0290] 4.
$678.times.1,000 acres=$678,000; [0291] 5. .SIGMA.=$678,000 [0292]
6. 100,000 bushels.times.$5.25=$525,000; [0293] 7. .SIGMA.=$525,000
[0294] 8. $678,000-$525,000=$153,000; [0295] 9.
$153,000.times.1.000 share=$153,000; [0296] 10. $123,000 [0297] 11.
$153,000-$123,000=$30,000; and [0298] 12.
$30,000.times.0.60=$18,000. Thus, the indemnity for the
supplemental policy is determined to be $18,000.
[0299] Situation 4: Assuming the producer planted 1,100 acres,
which is greater than the maximum acreage the insurer will insure
(1,000) because this number of acres exceeds the maximum insured
under any MPCI insurance plan during the most recent four calendar
years. In this case, the producer must report 1,000 acres insured
under the policy and 100 acres uninsured. The production to count
(100,000 bushels) will be allocated pro-rata to the acres insured
under PF. This calculation will be 1,000 acres divided by 1,100
acres times 100,000 bushels=90,909 bushels. This value would be
substituted in step 6 in the above calculations resulting in a
value of production to count equal to $477,272. The actual
indemnity paid on 1,100 acres insured under the RP insurance plan
would be $170,728 with 90,909 bushels of production to count. Under
the terms of the supplemental, this may be reduced to $123,000 for
1,000 insured acres.
[0300] The indemnity owed for the supplemental policy may be
determined as follows using steps similar to those outlined in
situation 2a [0301] 1. Highest projected price is restated as
$5.40+$0.25=$5.65. As the $5.65 (adjusted) highest projected price
is greater than the greater of the projected and harvest prices
($5.40), an indemnity may be payable.
[0302] Assuming that the pro-rated production to count is 90,909
bushels, the indemnity payable for the RP insurance plan on 1,000
insured acres is determined to be $123,000 [0303] 2. 150
bushels.times.0.80=120.0 bushels; [0304] 3. 120.0
bushels.times.$5.65 highest projected price=$678; [0305] 4.
$678.times.1,000 acres=$678,000; [0306] 5. .SIGMA.=$678,000 [0307]
6. 90,909 bushels.times.$5.25=$477,272; [0308] 7. .SIGMA.=$477,272
[0309] 8. $678,000-$477,272=$200,278; [0310] 9.
$200,278.times.1.000 share=$200,278; [0311] 10. $200,278 [0312] 11.
$200,278-$170,728=$29,550; and [0313] 12.
$29,550.times.0.60=$17,730. Thus, the indemnity for the
supplemental policy is determined to be $17,730.
[0314] Exemplary Calculations of Indemnity for the GRIP Insurance
Plan:
[0315] The projected and harvest prices announced by RMA may apply
to both RP and GRIP. Hence, a highest alternative projected price
may be $5.50 for both the GRIP and the RP insurance plans. Assume
the maximum amount of insurance per acre published by RMA is
$1,215.00. The producer chose 80% of the maximum amount of
insurance and the 90% coverage level. Finally, assume that the
policy protection per acre is $972.00 per acre (80% of $1,215.00
per acre maximum amount of insurance).
[0316] Situation 1: RMA announces the harvest price is $5.60 per
bushel. Following the steps shown in the supplemental policy, any
indemnity may be determined as follows: [0317] 1. $5.60 harvest
price is greater than $5.50 highest alternative projected price. No
further calculations are necessary. No indemnity is payable under
the supplemental policy.
[0318] Situation 2: RMA announces the harvest price is $5.25 per
bushel. Following the 12 steps from the supplemental policy
provisions, any indemnity is determined as follows: [0319] 1.
Determine if the highest alternative projected price exceeds the
projected price or harvest price established by RMA. If it does
not, no indemnity is due and no further calculations are necessary.
$5.50 highest projected price is greater than the $5.25 harvest
price and is less than the price cap of $5.65. Thus, an indemnity
may be payable.
[0320] Situation 2a: The final county yield is 100 bushels per
acre, resulting in county revenue of $525 per acre. The indemnity
that would have been paid for the GRIP insurance plan the insured
selected at contract inception is $271,970 (this calculation is
based on a supplemental policy Protection Adjustment Factor of 1.0,
policy protection of $972.00 per acre, and a trigger revenue of
$729 per acre, resulting in a payment calculation factor of
0.2798.times.$972.00=$271.97 per acre). The indemnity owed for the
supplemental policy may be determined as follows: [0321] 2.
Determine the supplemental policy Protection Adjustment Factor as
the greater of 1.00 or the ratio of the highest alternative
projected price to the RMA expected price [0322] The supplemental
policy Protection Adjustment Factor is max(1.00,
$5.50/$5.40=1.0185)=1.0185; [0323] 3. Multiply the policy
protection for each type and practice elected by the insured by the
result of step 2 [0324] $972.00.times.1.0185=$989.98 per acre;
[0325] 4. Determine the trigger revenue for each type and practice
as the product of the expected county yield, the highest projected
price (subject to the maximum price movement limit selected by the
insured), and the coverage level selected by the insured [0326]
150.times.$5.50.times.0.90=$742.50 per acre; [0327] 5. Subtract the
county revenue from the result of step 4 and divide that result by
the result of step 4 for each type and practice [0328]
($742.50-$525.00)/$742.50=0.2929; [0329] 6. Multiply the result of
step 3 for each type and practice by the result of step 5, the
number of insured acres, and by the insured's share [0330]
$989.98.times.0.2929.times.1,000 acres.times.1.000
share=$289,965.14; [0331] 7. Sum the results of step 6 [0332]
.SIGMA.=$289,965.14; [0333] 8. Determine the amount of any
indemnity that would be payable to the insured for each type and
practice under the GRIP insurance plan with the coverage level and
percent of the maximum amount of insurance the insured chose for
the supplemental policy [0334] $271,970.00; [0335] 9. Sum the
results of step 8 [0336] .SIGMA.=$271,970.00 [0337] 10. Subtract
the result of step 9 from the result of step 7 [0338]
$289,965.14-$271,970.00=$17,995.14; and [0339] 11. Multiply the
result of step 10 by the liability adjustment factor [0340]
$17,995.14.times.0.60=$10,797.08. Thus, the indemnity for the
supplemental policy is determined to be $10,797.08.
[0341] Situation 2b: The final county yield is 140 bushels per
acre, resulting in county revenue of $735.00 per acre. This exceeds
the GRIP trigger revenue of $729.00 per acre. No indemnity is owed
for the GRIP insurance plan the insured specified at contract
inception. Any indemnity owed for the supplemental policy may be
determined as follows: [0342] 2. The supplemental policy Protection
Adjustment Factor is max(1.00, $5.50/$5.40=1.0185)=1.0185; [0343]
3. $972.00.times.1.0185=$989.98 per acre; [0344] 4.
150.times.$5.50.times.0.90=$742.50 per acre; [0345] 5.
($742.50-$735.00)/$742.50=0.0101; [0346] 6.
$989.98.times.0.0101.times.1,000 acres.times.1.000 share=$9,998.80;
[0347] 7. .SIGMA.=$9,998.80 [0348] 8. $0 [0349] 9. v=$0 [0350] 10.
$9,998.80-$0=$9,998.80; and [0351] 11.
$9,998.80.times.0.60=$5,999.28. Thus, the indemnity for the
supplemental policy is determined to be $5,999.28.
[0352] Exemplary Data Collected by the Agent and Exemplary Actions
Taken by the Agent:
[0353] The following describes information that may be collected
and the actions that may be taken by an agent to initiate the
supplemental policy. [0354] 1. The following information may be
entered into an electronic data manager to initiate an insurance
offer/quote for a prospective insured person (e.g., an agent or
producer may submit this information to the electronic data manager
via a supplemental policy information page as described in more
detail herein with regard to at least FIGS. 1-3). [0355] a.
Complete name [0356] b. Address [0357] c. State and County [0358]
d. Telephone number [0359] e. Insured crop [0360] f. Estimated
acres to be planted by type and practice for the crop year [0361]
g. Each production database for the insured crop [0362] h. The
insured's estimate of the anticipated actual yield by
unit/type/practice for the current crop year if a production report
is not available [0363] i. The coverage level the insured elects
for the supplemental policy [0364] j. The insurance plan the
insured elects for determining the right to an indemnity (RP or
GRIP) [0365] k. If the insured elects GRIP, the percentage of the
maximum amount of insurance elected [0366] l. The liability
adjustment factor [0367] m. The alternative price discovery periods
the insured has chosen [0368] n. The maximum price movement limit
the insured has chosen [0369] 2. Upon receipt of the premium offer
for the selected alternative price discovery period(s), prepare the
offer sheet, obtain the insured's signature to indicate acceptance,
and input the data into the electronic data manager not later than
the business day following receipt. Send a copy of the signed
document (by fax or electronic means) to the insurer and file the
original. An application may be required to have all required
fields accurately completed and may be required to include a copy
of the quote, including the unique quote identifier to be accepted
by the insurer. [0370] 3. Obtain the final production and acreage
data (or production to count) for all units for the current crop
year and input that information into the electronic data manager if
that information was not provided initially. [0371] 4. If the
insured subsequently elects other alternative price discovery
periods, enter the request into the electronic data manager based
on the unique quote identifier applicable to the existing policy.
Upon receipt of the premium offer for the selected alternative
price discovery period(s), prepare the offer sheet, obtain the
insured's signature to indicate acceptance, and input the data into
the electronic data manager not later than the business day
following receipt. Send a copy of the signed document (by fax or
electronic means) to the insurer and file the original.
[0372] The following describes information that may be collected
and the actions that may be taken by an agent to process an
indemnity under the supplemental policy (e.g., for the RP plan). In
some embodiments, an agent or producer may submit this indemnity
(or loss) information to the electronic data manager system via a
supplemental policy indemnity information page as described in more
detail herein with regard to at least FIGS. 4-6). [0373] 1. Accept
the notice of loss and update the electronic data manager. [0374]
2. Collect the production reports or the production to count and
any MPCI indemnity amount from the insured for all
units/types/practices and update the electronic data manager.
[0375] 3. Obtain a completed IRS Form W-9 from the insured. Update
the electronic data manager with the taxpayer identification
number. Send a copy of the signed document (by fax or electronic
means) to insurer and file the original.
[0376] Exemplary Supplemental Crop Insurance Policy Rating:
[0377] A supplemental policy may be priced considering a
combination of path dependent Asian and look-back option features
in conjunction with potential changes in the second correlated
variable (i.e. crop yields). The resulting payoff function may be
complex and may not be priced using closed form solutions. In some
instances, when closed form solutions for pure-risk prices are not
available, numerical pricing procedures may be used.
[0378] A system for determining characteristics for supplemental
insurance policies may include ratemaking processes for use in a
revenue-based crop insurance policy, and on both market-derived
data and options pricing theory. The yield and revenue crop
insurance aspects of supplemental policy pricing may draw
particularly upon federal crop insurance procedures and values used
under the Revenue Protection (RP) and Group Risk Income
Protection-Harvest Revenue Option (GRIP-HRO) policies. The options
pricing theory component may consider the implications of current
market values and volatilities implied by options trades for the
near-the-money put and call options trading. These two distinct,
but related disciplines may then be combined through a simulation
process to generate a pure-risk rate estimate, which may then be
subjected to loads. Premium rates may be adjusted based on the
individual policy's attributes, including, for example, the number
of units insured, expected insured acreage, and historical yield
data provided. All calculations regarding the NRS's individual
rating and underwriting may stand fully independent and apart from
the MPCI policy. Futures data (e.g., from future and options
markets) can be acquired, as will be understood by those in the
art, and this futures data can be used by a rating algorithm. This
allows generation of premiums (and indemnities) based on
predictions of conditions that may impact crops or other insured
items.
[0379] A supplemental policy may be priced (e.g., have a premium
rate/amount determined therefore) using a combination of the
trinomial tree pricing model and Monte Carlo procedures. A standard
trinomial tree pricing model may be used to derive the appropriate
potential up-down price movement multipliers as well as the
risk-adjusted "risk-neutral" price movement probabilities which can
be used to generate a large number, N (generally 10,000), of
potential price trajectories. Potential payouts along each
trajectory may be computed and the premium level may then be
computed as the average payout over all N trajectories.
[0380] Key Variables:
[0381] Supplemental policy premiums may be calculated using the
following information: (a) the contract origination day T.sub.0,
(b) the contract month cmo, (c) the contract expiration day
T.sub.n, (d) the contract futures price F.sub.0 from the most
recent trading day prior to date T.sub.0, (e) the futures price
annualized implied volatility .sigma..sub.P from the most recent
five days prior to the contract origination day, (f) the
supplemental policy price discovery months (PFmo-j) for j=1, 2, . .
. J, (g) RMA's projected and harvest price discovery periods
(RPPmo) and (RHPmo), (h) the producers' average or expected yield (
), (i) the producers' yield standard deviation .sigma..sub.Y, (j)
the logprice-yield correlation, .rho..sub.P,Y, and (k) the
producers' crop insurance coverage level (CVG).
[0382] Price Trajectories:
[0383] Letting m=1, the trinomial tree may approximate a series of
stochastic price movements by assuming that prices F.sub.1 at the
end of time period 1 can move from the initial price F.sub.0 to 3
possible prices F.sub.1=(u F.sub.0, m F.sub.0, d F.sub.0), with
"risk neutral" probabilities (p.sub.u, P.sub.m, P.sub.d). The
values u, d, p.sub.u, P.sub.d, and p.sub.m=1-p.sub.u-p.sub.d may be
calibrated to approximate potential movements implied by various
stochastic processes including, but not limited to, the stochastic
process underlying the Black-Scholes stock market model or the
Black-76 futures market model. With the Black-76 futures model, the
model's parameters are computed as described in Haug2 with a zero
carrying cost and no drift.
[0384] The numerical values in the following example (F.sub.0=6.075
and .sigma..sub.P=0.2684) were obtained from the December-2012 corn
contract for a simulated supplemental policy quote on Nov. 1, 2011.
In this example T.sub.0 corresponds to Oct. 31, 2011, T.sub.1 to
Nov. 1, 2011 and T.sub.410 corresponds to Dec. 14, 2012, the last
day on which the December-2012 corn contract is traded. The
"up-down" parameters for the trinomial tree model are computed as
provide in equation set (1):
u=e.sup..sigma..sup.P.sup. {square root over (2.DELTA.t)}
d=e.sup.-.sigma..sup.P.sup. {square root over (2.DELTA.t)}
m=1 (1)
[0385] while the "risk-neutral probabilities" of moving u, d, or m
are computed as provide in equation set (2):
p u = ( 1 - - .sigma. P .DELTA. t 2 .sigma. P .DELTA. t 2 - -
.sigma. P .DELTA. t 2 ) 2 p d = ( .sigma. P .DELTA. t 2 - 1 .sigma.
P .DELTA. t 2 - .sigma. P .DELTA. t 2 ) 2 p m = 1 - p u - p d ( 2 )
##EQU00001##
[0386] These "probabilities" may not be actual probabilities in an
actuarial sense, but may be "risk adjusted probabilities" that can
be used in a "risk-neutral" pricing model. For this example there
are 410 days between T.sub.0 and the contract closing day
T.sub.410. Although not every day between Nov. 1, 2011 and Dec. 14,
2012 is an actual trading day, the standard assumption and
approximate potential price movements can be used as if there were
410 trading days in the period. Assuming daily trading allows
specifying .DELTA.t as 1/365. The trinomial parameters become those
provide in equation sets (3) and (4):
u = .sigma. P 2 .DELTA. t = 0.2684 2 365 .apprxeq. 1.020067 d = -
.sigma. P 2 .DELTA. t = - 0.2684 2 365 .apprxeq. 0.980328 m = 1 and
( 3 ) p u = ( 1 - - .sigma. P .DELTA. t 2 .sigma. P .DELTA. t 2 - -
.sigma. P .DELTA. t 2 ) 2 = ( 1 - - 0.2684 1 2 365 0.2684 1 2 365 -
- 0.2684 1 2 365 ) 2 .apprxeq. 0.2475227 p d = ( .sigma. P .DELTA.
t 2 - 1 .sigma. P .DELTA. t 2 - - .sigma. P .DELTA. t 2 ) 2 = (
0.2684 1 2 365 0.2684 1 2 365 - - 0.2684 1 2 365 ) .apprxeq.
0.2524896 p m = 1 - p u - p d .apprxeq. 0.4999877 ( 4 )
##EQU00002##
[0387] FIG. 17 is an exemplary visualization of the first two
stages of a trinomial tree 1700 in accordance with one or more
embodiments of the present technique. A trinomial tree may not
actually be constructed when estimating supplemental policy
premiums since supplemental policy payouts may be path dependent
rather than merely state dependent. Path dependency may be
illustrated using the above figure. The stage 2 node F.sub.2=6.075
can be reached along three paths from the original F.sub.0=6.075
i.e. F.sub.2=6.075=m m F.sub.0=u d F.sub.0=d u F.sub.0. If
potential payout depended upon the F1 values passed in arriving at
F.sub.2=6.075, the option values would be termed "path dependent".
Since the number of possible paths grow exponentially with
increases in the number of time periods, trees may not be used when
pricing path dependent options. However, the values d, u, p.sub.u,
P.sub.d, and P.sub.m can used to efficiently construct a Monte
Carlo simulation of a large number of possible price trajectories
between times T.sub.0 and T.sub.410. FIG. 18 is a plot 1800 of a
sample resulting trajectory (Price vs. Days) in accordance with one
or more embodiments of the present technique.
[0388] Using vectorized code, a large number (say 10,000 or more)
of such potential price trajectories between T.sub.0 and T.sub.410
can be generated. The set of simulated price trajectories may then
be applied in pricing the supplemental policy. For example, it may
be assumed that a corn producer in DeKalb County, Ill. has a trend
adjusted yield of 197.84 bushels per acre and Grower A purchases a
supplemental policy contract with price discovery periods of
December-2011, April-2012, and July-2012. The RMA price discovery
periods for DeKalb County are Feb. 1-28, 2012 and Oct. 1-31, 2012.
It may be assumed that Grower A elects 85% coverage. On Nov. 1,
2011 the most recent futures price was F.sub.0=$6.075 and
.sigma..sub.P=0.2684.
[0389] Using the procedures described above, 10,000 price
trajectories can be simulated. For each of the 10,000 simulated
trajectories, the potential December-2011, April-2012, and
July-2012 supplemental policy discovery prices may be calculated as
well as the RMA Projected Price, RPP, and the RMA Harvest Price,
RHP.
[0390] FIG. 19 is a plot 1900 of exemplary simulated trajectories
in accordance with one or more embodiments of the present
technique. Plot 1900 includes presents a plot of 30 of the 10,000
simulated trajectories between Nov. 2011 and Dec. 14, 2012. The
vertical lines 1900a, 1900b, and 1900e-1900h bracket the
supplemental policy price discovery periods of December-2011,
April-2012, and July-2012. The lines 1900c and 1900d bracket the
RMA projected price discovery period February-2012 while the lines
1900i and 1900j bracket the RMA harvest price discovery period
October-2012. For each trajectory i, a monthly supplemental policy
price PFP-ji may be calculated as the average of the daily
simulated prices between each pair of red brackets. For this
example, there may be simulated prices PDP-ji with i=1, . . . 1000
for each of our j=1, 2, 3 supplemental policy discovery periods.
For each trajectory i=1, 2, . . . , 10000, the supplemental policy
price PFP-i may be computed as the maximum of the 3 monthly
averages PFP-ji. Ten thousand potential RMA projected prices RPP-i
and potential harvested prices RHP-i may be computed similarly.
[0391] Simulating Correlated Yield Realizations:
[0392] As a result of the above, there are 10,000 simulated price
trajectories and potential supplemental policy and RMA price
discovery realizations. To estimate supplemental policy premium
rates, 10,000 simulated correlated price-yield realizations can be
generated. As neither the price-yield correlation nor the standard
deviation of producer yields may be reliably estimated from the
producer's reported yield series, both values can be estimated
using RMA premium rating data for their revenue and yield insurance
products. The log(price)-yield correlation used in calculating
RMA's revenue insurance premium rates can be used. For DeKalb
County, Ill. the log(price)-yield correlation is approximately
.sigma..sub.P,Y=-0.399, for example. The farm's yield standard
deviation can be estimated by using the producer's chosen coverage
level's (85% in this example) yield insurance premium rate of
approximately 0.038. If 0.038 implies a yield standard deviation of
43.5. To generate a yield series Y.about.N(198,43.5) with
COR(Y,log(P)).about.0.399, the following process that is
conditional upon set of 10,000 simulated harvest prices can be
used. Let:
Y=a+b log(P)+ce (5)
with .mu..sub.Y, .sigma..sub.Y.sup.2, .mu..sub.log(P),
.sigma..sub.log.sup.2(P), .rho..sub.log(P),Y, .mu..sub.e=0,
.sigma..sub.e.sup.2=1 known and E(log(p),e)=0, the following can be
proven:
b = .rho. lo g ( P ) , Y .sigma. Y .sigma. lo g ( P ) .apprxeq. -
64.67 a = .mu. Y - b .mu. lo g ( P ) .apprxeq. 314.67 c = .sigma. y
2 - b 2 .sigma. lo g ( P ) 2 .sigma. e 2 .apprxeq. 39.89 ( 6 )
##EQU00003##
will generate a set of joint log(price)-yield realizations with the
desired means, standard deviations, and correlations. When
expression (5) is applied to the log of the example's simulated
prices, the resulting simulated yields may have a sample mean of
about 199 bushels per acre, a standard deviation of 43.2, and a
log(price)-yield correlation of -0.40. In the following the
simulated yield realizations are denoted as Y-i. At the conclusion
of the simulations there may be i=1, 2, . . . , 1000 simulated
realizations of potential supplemental policy prices PFP-i, RMA's
projected prices RPP-i, RMA's harvest prices RHP-i, and simulated
producer yields Y-i.
[0393] Supplemental Policy Premium Calculation:
[0394] Given the producer's expected yield , selected coverage CVG,
and the simulated prices and yields, the pure risk supplemental
policy premium rate may be calculated as follows:
[0395] 10,000 potential RMA RP indemnity triggers are calculated
(one for each trajectory) as:
RTRIG-i=CVG.times.max(RPP-i,RHP-i).times. (7)
[0396] 10,000 potential Price-Flex indemnity triggers are
calculated (one for each trajectory) as:
PFTRIG-i=CVG.times.PFP-i.times. (8)
[0397] 10,000 potential revenue to count realizations are
calculated as:
RTC-i=RHP-i.times.Y-i (9)
[0398] 10,000 potential RP indemnity realizations are calculated
as:
RPay-i=max(RTRIG-i-RTC-i,0) (10)
[0399] 10,000 preliminary Price-Flex payments are calculated
as:
PPFPay-i=max(PFTRIG-i-RTC-i,0) (11)
[0400] 10,000 Price-Flex payments are calculated as:
PFPay-i=max((PPFPay-i)-(Rpay-i),0) (12)
The pure risk supplemental policy loss cost is then calculated as
the mean of the 10,000 simulated supplemental policy payments:
PR - Prem = 1 10000 i PFPay - i ( 13 ) ##EQU00004##
[0401] Supplemental policy GRIP loss costs may be computed in a
similar manner using county yields, mean yields and RMA-implied
standard deviations in lieu of farm level yield parameters while
applying standard GRIP calculations to both the RMA and the
supplemental policy simulated payments, reducing the preliminary
GRIP supplemental policy simulated payment by the amount of the
simulated RMA GRIP payments. The GRIP loss cost may then be
computed as the average of the 10,000 simulated GRIP supplemental
policy payments.
[0402] Exemplary Embodiments of Interactive Interfaces for Use in
Acquiring Supplemental Policy and/or Loss Parameters and Displaying
Determined Supplemental Policy Premium and/or Indemnity Values:
[0403] FIG. 1 is a flowchart that illustrates a method 100 for
presenting a premium for a supplemental policy in accordance with
one or more embodiments of the present invention. Method 100
generally includes providing for the display of a supplemental
policy information page (block 102), and in response to receiving
policy information (e.g., receiving policy parameters submitted via
the supplemental policy information page) (block 104), determining
a premium for the supplemental policy based at least in part on the
received information (block 106) and providing for display of the
premium for the supplemental policy (block 108).
[0404] In some embodiments, providing for the display of a
supplemental policy information page (block 102) includes
displaying a graphical user interface that enables a user to enter
one or more policy parameters (e.g., a policy parameter set) that
may be used to determine a premium for a supplemental insurance
policy. For example, providing for the display of a supplemental
policy information page may include displaying a web page (or
similar application/portal interface) that includes fields for the
entry/identification of the following policy parameters: a crop to
be insured, an estimate of the number of acres to be planted by
type and practice for the crop year, each production database for
the insured crop, an estimate of the anticipated actual yield by
unit/type/practice for the current crop year (e.g., if a production
report is not available), a coverage level elected for the
supplemental policy, an insurance plan elected for determining the
right to an indemnity (RP or GRIP) (and if the insured elects GRIP,
the percentage of the maximum amount of insurance elected), a
liability adjustment factor, one or more alternative price
discovery periods, and/or a maximum price movement limit. In some
embodiments, acquisition of the policy parameters is facilitated by
a user interface that prompts, or otherwise requests a user to
enter the policy parameters. FIG. 2 is an illustration of an
exemplary supplemental policy information page 200. Page 200
includes policy parameter fields 202. Fields 202 may include
personal information fields 204 (in a first display region) for the
entry of information relating to the producer, such as full name,
address, city, sate, zip code, county, telephone and/or the like.
Fields 202 may include crop/policy information fields 206 (in a
second display region) for the entry of information relating to
crop and requested policy terms, such as a crop to be insured, an
estimate of the number of acres to be planted by type and practice
for the crop year, each production database for the insured crop,
an estimate of the anticipated actual yield by unit/type/practice
for the current crop year (e.g., if a production report is not
available), a coverage level elected for the supplemental policy,
an insurance plan elected for determining the right to an indemnity
(RP or GRIP) (and if the insured elects GRIP, the percentage of the
maximum amount of insurance elected), a liability adjustment
factor, one or more alternative price discovery periods, and/or a
maximum price movement limit. The interface may include an "ADD"
button (control element) displayed adjacent the field for the crop
to be insured. The button may be selected in the event the producer
is requesting a premium quote that covers more than one crop. Upon
selection of the "ADD" button displayed adjacent the field for the
crop to be insured, an additional column of crop/policy information
fields may be displayed to the right, allowing the agent to enter
additional crops to be covered. The interface may also include an
"ADD" button (control element) displayed adjacent to the field for
alternate price discovery period(s). The button may be selected in
the event the producer desires to select additional alternate price
discovery periods. Upon selection of the "ADD" button displayed
adjacent to the field for alternate price discovery period(s), an
additional field may be displayed for selecting an additional
alternate price discovery period (e.g., April 1-April 30).
[0405] In response to receiving policy information (e.g., receiving
policy parameters submitted via the supplemental policy information
page), method 100 may proceed to determining a premium for the
supplemental policy based at least in part on the received
information (blocks 104 and 106). For example, upon the user (e.g.,
the agent) populating the policy parameter fields 202 and selecting
the "SUBMIT" button (control element), the policy parameters may be
submitted for use in determining a premium for the requested
supplemental policy. In some embodiments, determining a premium for
the supplemental policy based at least in part on the received
information includes determining a premium using the techniques
described herein. For example, the premium may be determined to be
$2,340 as described above using parameters that are the same or
similar to the policy parameters submitted via page 200.
[0406] FIGS. 2A-2I are illustrations of exemplary supplemental
policy information pages in accordance with one or more embodiments
of the present invention.
[0407] FIG. 2A depicts a screenshot of a policy information page
200a initially displayed to a user for the submission of policy
(e.g., quote) information.
[0408] FIG. 2B depicts a screenshot of a policy information page
200b displayed to a user in response to user selection of the RP
insurance plan.
[0409] FIG. 2C depicts a screenshot of a policy information page
200c displayed to a user that includes user provided policy (e.g.,
quote) information for an RP plan prior to selection of alternative
price discovery period(s).
[0410] FIG. 2D depicts a screenshot of a policy information page
200d displayed to a user that includes user provided policy (e.g.,
quote) information for an RP plan after selection of an alternative
price discovery period, and including a dynamically generated
option to enter an additional alternative price discovery
period.
[0411] FIG. 2E depicts a screenshot of a completed policy
information page 200e for an RP plan that is displayed to a user
after selection of two alternative price discovery periods.
[0412] FIG. 2F depicts a screenshot of a policy information page
200f displayed to a user in response to user selection of the GRIP
insurance plan.
[0413] FIG. 2G depicts a screenshot of a policy information page
200g displayed to a user that includes user provided policy (e.g.,
quote) information for a GRIP plan prior to selection of
alternative price discovery period(s).
[0414] FIG. 2H depicts a screenshot of a policy information page
200f displayed to a user that includes user provided policy (e.g.,
quote) information for a GRIP plan after selection of an
alternative price discovery period, and including a dynamically
generated option to enter an additional alternative price discovery
period.
[0415] FIG. 2I depicts a screenshot of a completed policy
information page 200i for a GRIP plan that is displayed to a user
after selection of two alternative price discovery periods.
[0416] FIG. 2J depicts a screenshot of a completed policy
information page 200j for a RP plan that is displayed to a user
after selection of two alternative price discovery periods.
[0417] In some embodiments, determining a premium for a
supplemental policy includes employing financial engineering
techniques to determine a premium based on the submitted policy
parameters. FIG. 3 is a flowchart that illustrates a method 300 for
determining a premium for a supplemental policy in accordance with
one or more embodiments of the present technique. Method 300
generally includes determining a premium amount for each selected
coverage of a supplemental policy (block 302), summing the premium
amounts for the selected coverage(s) to generate a premium amount
(block 304), and applying a coverage factor and/or quantity factor
to the premium amount to generate a premium for the supplemental
policy (block 306).
[0418] In some embodiments, determining a premium amount for each
selected coverage of a supplemental policy (block 302) includes
determining a premium amount for each selected coverage of a
supplemental policy using the exemplary supplemental crop insurance
policy rating techniques described herein. For example, a per acre
premium for a selected coverage level of a supplemental policy may
be determined using the following information: (a) the contract
origination day T.sub.0, (b) the contract month cnmo, (c) the
contract expiration day T.sub.n, (d) the contract futures price
F.sub.0 from the most recent trading day prior to date T.sub.0, (e)
the futures price annualized implied volatility .sigma..sub.P from
the most recent five days prior to the contract origination day,
(f) the supplemental policy price discovery months (PFmo-j) for
j=1, 2, . . . J, (g) RMA's projected and harvest price discovery
periods (RPPmo) and (RHPmo), (h) the producers' average or expected
yield ( ), (i) the producers' yield standard deviation ay, (j) the
logprice-yield correlation, .rho..sub.P,Y, and (k) the producers'
crop insurance coverage level (CVG). Although certain exemplary
ratemaking techniques are described for the purpose of
illustration, embodiments may include any suitable rate making
techniques for use in determining a premium amount for a coverage
level of a supplemental policy. Futures data (e.g., from future and
options markets) can be acquired, as will be understood by those in
the art, and this futures data can be used by a rating algorithm.
This allows generation of premiums (and indemnities) based on
predictions of conditions that may impact crops or other insured
items.
[0419] In some embodiments, summing the premium amounts for the
selected coverage(s) to generate a premium amount (block 304)
includes summing the premium amount per acre for a coverage level
for all alternative price discovery periods elected by the insured.
For example, where the insured selects two alternative price
discovery periods for the March 15th sales closing date, e.g.,
December 1 to December 31 and April 1 to April 30, having premium
rates of $2.00 and $1.90 per acre, respectively, the premium amount
may be determined to be $3.90 per acre (e.g., $2.00 per acre+$1.90
per acre).
[0420] In some embodiments, applying a coverage factor and/or
quantity factor to the premium amount to generate a premium for the
supplemental policy (block 306) includes applying a liability
adjustment factor, a percentage protection per acre, a number of
insured acres and/or a share. If, for example, the insured selects
the RP plan having a premium amount per acre of $3.90, a liability
adjustment factor of 60%. 1000 acres and a share of 100%, the
premium may be determined to be $2,340 (e.g., $3.90 per
acre*0.60*1000 acres*1.0=$2,340). If, for example, the insured
selects the GRIP plan having a premium amount per acre of $6.83, an
80% protection per acre, a liability adjustment factor of 60%, 1000
acres and a share of 100%, the premium may be determined to be
$3,280 (e.g., $6.83 per acre*0.80*0.60*1000 acres*1.0=$3,280).
[0421] In some embodiments, the determined premium may be provided
for display to the user (block 108). For example, the premium may
be displayed to the user (e.g., the agent) via a supplemental
policy information page 400 of FIG. 4. Page 400 includes display of
a premium amount 402 that corresponds to the submitted policy
parameters 202. Page 400 may allow the user (e.g., the agent) to
print the information as a quote (or an offer for contract)
including the policy terms (e.g., including the policy parameters
and premium amount) listed on page 400. The agent and the producer
may be able to sign/execute the contract. Thus, where the premium
determination is done in a matter of minutes or seconds, the agent
may be able to provide a premium quote and execute a contract while
the agent is "at the kitchen table" with the producer.
[0422] FIGS. 4A and 4B are illustrations of an exemplary
supplemental policy information pages including display of a
determined premium in accordance with one or more embodiments of
the present invention. FIG. 4A depicts a screenshot of a policy
quote page 400a for an RP plan after user submission of the quote
information via selection of the "Get Price" button (control
element). FIG. 4B depicts a screenshot of a policy quote page 400b
for a GRIP plan after user submission of the quote information via
selection of the "Get Price" button (control element).
[0423] FIG. 5 is a flowchart that illustrates a method 500 for
providing an estimated indemnity for a supplemental policy in
accordance with one or more embodiments of the present invention.
Method 500 generally includes providing for the display of a
supplemental policy indemnity information page (block 502), and in
response to receiving loss information (e.g., receiving loss
parameters submitted via the supplemental policy indemnity
information page) (block 504), determining an estimated loss for
the supplemental policy based at least in part on the received
information (block 506) and providing for display of the estimated
indemnity for the supplemental policy (block 508).
[0424] In some embodiments, providing for the display of a
supplemental policy indemnity information page (block 502) includes
displaying a graphical user interface that enables a user to enter
one or more loss parameters (e.g., a loss parameter set) that may
be used to determine an estimated indemnity for a supplemental
insurance policy. For example, providing for the display of a
supplemental policy indemnity information page may include
displaying a web page (or similar application/portal interface)
that includes fields for the entry/identification of the following
loss parameters: a date of loss, indemnity payable for RP or GRIP
(depending on the insurance plan elected in the supplemental policy
terms), production to count, harvest price, highest projected
price, and/or projected price. In some embodiments, acquisition of
the loss parameters is facilitated by a user interface that
prompts, or otherwise requests a user to enter the loss parameters.
FIG. 6 is an illustration of an exemplary supplemental policy
indemnity information page 600. Page 600 may be accessed by an
agent logging into a data management site for the insurer and
entering a policy number (e.g., 123456789-A). Page 600 includes
loss parameter fields 602 for the entry of information relating to
the claimed loss by the insured. The fields may include a date of
loss, indemnity payable for RP or GRIP (depending on the insurance
plan elected in the supplemental policy terms), production to
count, harvest price, highest projected price, and/or projected
price.
[0425] In response to receiving loss information (e.g., receiving
loss parameters submitted via the supplemental policy indemnity
information page), method 500 may proceed to determining an
estimated indemnity for the supplemental policy based at least in
part on the received information (blocks 504 and 506). For example,
upon the user (e.g., the agent) populating the loss parameter
fields 602 and selecting the "SUBMIT" button (control element),
loss parameters may be submitted for use in determining an
estimated indemnity for the supplemental policy. In some
embodiments, determining an estimated indemnity for the
supplemental policy based at least in part on the received
information includes determining an estimated indemnity for the
supplemental policy using the techniques described herein. For
example, the estimated indemnity may be determined to be $7,200 as
described above using parameters that are the same or similar to
the loss parameters submitted via page 600.
[0426] FIG. 7A is a flowchart that illustrates a method 700 for
determining an estimated indemnity owed under a supplemental policy
for an RP insurance plan in accordance with one or more embodiments
of the present technique. Method 700 may generally include
determining a highest alternative projected price (block 702),
determining whether the highest alternative projected price exceeds
a projected price or a RMA harvest price (block 704), and, if the
highest alternative projected price does not exceed the projected
price or the RMA harvest price, determining that no indemnity is
due (block 706). Method 700 may include, if the highest alternative
projected price does exceed the projected price or the RMA harvest
price, applying a coverage level to an approved yield for each type
and practice to generate a yield coverage (block 708), applying a
highest projected price to the yield coverage to generate a
coverage amount (block 710), applying the coverage amount to
insured acreage to generate an insured coverage amount (block 712),
applying a production count to a harvest price to generate a
production amount (block 714), reducing the insured coverage amount
by the production amount to generate a production loss (block 716),
applying a share to the production loss to generate an eligible
production loss (block 718), determining a RP indemnity (block
720), reducing the eligible production loss by the RP indemnity to
generate an eligible loss (block 722), and applying a liability
adjustment factor to the eligible loss to generate the estimated
indemnity for the supplemental policy (block 724).
[0427] In some embodiments, determining a highest alternative
projected price (block 702) includes identifying the highest price
projected for one or more alternative price discover periods. For
example, the highest alternative projected price may be determined
to be $5.50 as discussed above.
[0428] In some embodiments, determining whether the highest
alternative projected price exceeds a projected price or a RMA
harvest price (block 702) includes comparing the highest
alternative price to the projected price and the RMA harvest price.
For example, the highest alternative projected price of $5.50 may
be determined to exceed a projected price or a RMA harvest price
when $5.25 is the greater of the projected and harvest prices.
[0429] In some embodiments, applying a coverage level to an
approved yield for each type and practice to generate a yield
coverage (block 708) includes multiplying the approved yield (e.g.,
150 bushels) for each type and practice by the coverage level
(e.g., 0.80) and rounding the result to the nearest tenth of a
bushel or the nearest whole pound, as appropriate (e.g., 150
bushels.times.0.80=120.0 bushels). Thus, for example, a yield
coverage may be determined to be 120.0 bushels.
[0430] In some embodiments, applying a highest projected price to
the yield coverage to generate a coverage amount (block 710)
includes multiplying the yield coverage for each type and practice
by the highest projected price (subject to the maximum price
movement limit selected by the insured) and rounding the result to
the nearest whole dollar (e.g., 120.0 bushels.times.$5.50 highest
projected price=$660). Thus, for example, a coverage amount for a
type and practice may be determined to be $600.
[0431] In some embodiments, applying the coverage amount to insured
acreage to generate an insured coverage amount (block 712) includes
multiplying the coverage amount for each type and practice by the
applicable number of insured acres (e.g., $660.times.1,000
acres=$660,000). The insured coverage amount may be a sum of the
individual coverage amounts for all of the types and practices.
Thus, for example, an insured coverage amount may be determined to
be $660,000.
[0432] In some embodiments, applying a production count to a
harvest price to generate a production amount (block 714) includes
multiply the production to count (e.g., 100,000 bushels) of each
type and practice by the harvest price (e.g., 100,000
bushels.times.$5.25=$525,000). The insured production amount may be
a sum of the individual production amounts for all of the types and
practices. Thus, for example, a production amount may be determined
to be $525,000.
[0433] In some embodiments, reducing the insured coverage amount by
the production amount to generate a production loss (block 716)
includes subtracting the production amount from the insured
coverage amount (e.g., $660,000-$525,000=$135,000). Thus, for
example, a production loss may be determined to be $135,000.
[0434] In some embodiments, applying a share to the production loss
to generate an eligible production loss (block 718) includes
multiplying the production loss by the insured's share (e.g.,
$135,000.times.1.000 share=$135,000). Thus, for example, an
eligible production loss may be determined to be $135,000.
[0435] In some embodiments, determining a RP indemnity (block 720)
includes determining the amount of any indemnity that would be
payable to the insured under the RP insurance plan on the acres
insured under the supplemental policy with all acres insured as a
single unit and the coverage level the insured chose for the
supplemental policy. Thus, for example, a RP indemnity may be
determined to be $123,000.
[0436] In some embodiments, reducing the eligible production loss
by the RP indemnity to generate an eligible loss (block 722)
includes subtracting the RP indemnity from the eligible production
loss (e.g., $135,000-$123,000=$12,000). Thus, for example, an
eligible loss may be determined to be $12,000.
[0437] In some embodiments, applying a liability adjustment factor
to the eligible loss to generate the estimated indemnity for the
supplemental policy (block 724) includes multiplying the eligible
loss by a liability adjustment factor (e.g.,
$12,000.times.0.60=$7,200). Thus, for example, an estimated
indemnity may be determined to be $7,200.
[0438] FIG. 7B is a flowchart that illustrates a method 750 for
determining an estimated indemnity owed under a supplemental policy
for a GRIP insurance plan in accordance with one or more
embodiments of the present technique. Method 750 may generally
include determining a highest alternative projected price (block
752), determining whether the highest alternative projected price
exceeds a projected price or a RMA harvest price (block 754), and,
if the highest alternative projected price does not exceed the
projected price or the RMA harvest price, determining that no
indemnity is due (block 756). Method 750 may include, if the
highest alternative projected price does exceed the projected price
or the RMA harvest price, determining a policy protection
adjustment factor (block 758), applying the policy protection
adjustment factor to policy protection for each type and practice
to generate a coverage amount (block 760), determining a trigger
revenue for each type and practice based on expected county yield,
highest projected price, and selected coverage level (block 762),
determining a county ratio based on the county revenue and the
trigger revenue for each type and practice (block 764), applying
the county ratio and the coverage amount to insured acreage and a
share to generate an eligible production loss (block 766),
determining a GRIP indemnity (block 768), reducing the eligible
production loss by the GRIP indemnity to generate an eligible loss
(block 770), and applying a liability adjustment factor to the
eligible loss to generate an estimated indemnity for the
supplemental policy (block 772).
[0439] In some embodiments, determining a highest alternative
projected price (block 702) includes identifying the highest price
projected for one or more alternative price discover periods. For
example, the highest alternative projected price may be determined
to be $5.50 as discussed above.
[0440] In some embodiments, determining whether the highest
alternative projected price exceeds a projected price or a RMA
harvest price (block 702) includes comparing the highest
alternative price to the projected price and the RMA harvest price.
For example, the highest alternative projected price of $5.50 may
be determined to exceed a projected price or a RMA harvest price
when $5.25 is the greater of the projected and harvest prices.
[0441] In some embodiments, determining a policy protection
adjustment factor (block 758) includes determining the supplemental
policy protection adjustment factor as the greater of 1.00 or the
ratio of the highest alternative projected price to the RMA
expected price (e.g., SPPAF=max(1.00, $5.50/$5.40=1.0185)=1.0185).
Thus, for example, a policy protection adjustment factor may be
determined to be 1.0185.
[0442] In some embodiments, applying the policy protection
adjustment factor to policy protection for each type and practice
to generate a coverage amount (block 760) includes multiplying the
policy protection for each type and practice elected by the insured
by the policy protection adjustment factor (e.g.,
$972.00.times.1.0185=$989.98 per acre). Thus, for example, a
coverage amount may be determined to be $989.98 per acre.
[0443] In some embodiments, determining a trigger revenue for each
type and practice based on expected county yield, highest projected
price, and selected coverage level (block 762) includes determining
the trigger revenue for each type and practice as the product of
the expected county yield, the highest projected price (subject to
the maximum price movement limit selected by the insured), and the
coverage level selected by the insured (e.g.,
150.times.$5.50.times.0.90=$742.50 per acre). Thus, for example, a
trigger revenue may be determined to be $742.50 per acre.
[0444] In some embodiments, determining a county ratio based on the
county revenue and the trigger revenue for each type and practice
(block 764) includes subtracting the county revenue from the
trigger revenue and dividing that result by the trigger revenue for
each type and practice (e.g., $742.50-$525.00)/$742.50=0.2929).
Thus, for example, a county ratio may be determined to be
0.2929.
[0445] In some embodiments, applying the county ratio and the
coverage amount to insured acreage and a share to generate an
eligible production loss (block 766) includes multiplying the
coverage amount for each type and practice by the county ratio, the
number of insured acres, and by the insured's share (e.g.,
$989.98.times.0.2929.times.1,000 acres.times.1.000
share=$289,965.14). The eligible production loss may be a sum of
the individual eligible production losses for all of the types and
practices. Thus, for example, an eligible production loss may be
determined to be $289,965.14.
[0446] In some embodiments, determining a GRIP indemnity (block
768) includes determining the amount of any indemnity that would be
payable to the insured for each type and practice under the GRIP
insurance plan with the coverage level and percent of the maximum
amount of insurance the insured chose for the supplemental policy
(e.g., $271,970.00). Thus, for example, a GRIP indemnity may be
determined to be $271,970.00.
[0447] In some embodiments, reducing the eligible production loss
by the GRIP indemnity to generate an eligible loss (block 770)
includes subtracting the GRIP indemnity from the eligible
production loss (e.g., $289,965.14-$271,970.00=$17,995.14). Thus,
for example, an eligible loss may be determined to be
$17,995.14.
[0448] In some embodiments, applying a liability adjustment factor
to the eligible loss to generate an estimated indemnity for the
supplemental policy (block 772) includes multiplying the eligible
loss by the liability adjustment factor (e.g.,
$17,995.14.times.0.60=$10,797.08). Thus, for example, an estimated
indemnity for the supplemental policy may be determined to be
$10,797.08.
[0449] In some embodiments, the estimated indemnity may be provided
for display to the user (e.g., the agent) (block 508). For example,
the estimated indemnity may be displayed to the user (e.g., the
agent) via a supplemental policy indemnity estimation page 800 of
FIG. 8. Page 800 includes display of an estimated indemnity value
802 that corresponds to the submitted loss parameters. Thus, where
the estimated indemnity determination is done in a matter of
minutes or seconds, the agent may be able to provide an estimated
indemnity for a loss under the supplemental policy while he/she is
"at the kitchen table" with the producer.
[0450] FIG. 9 is a block diagram that illustrates a supplemental
policy management environment 900. Environment 900 includes a
server 902 and a user device 904 communicatively coupled via a
network 906. Network 906 may include an electronic communications
network, such as the Internet, a local area network (LAN), a wide
area (WAN), a cellular communications network or the like. Network
906 may include a single network or combination of networks.
[0451] Device 904 may include any variety of electronic devices.
For example, device 904 may include a desktop computer, a laptop
computer, a tablet computer, a cellular phone, a personal digital
assistant (PDA), and/or the like. In some embodiments, device 904
includes various input/output (I/O) interfaces, such as a graphical
user interface (e.g., a display screen) 907, an image acquisition
device (e.g., a camera), an audible output user interface (e.g., a
speaker), an audible input user interface (e.g., a microphone), a
keyboard, a pointer/selection device (e.g., a mouse, a trackball, a
touchpad, a touchscreen, a stylus, etc.), a printer, or the like.
In some embodiments, device 904 includes general computing
components and/or embedded systems optimized with specific
components for performing specific tasks. Device 904 may include an
application 908. Application 908 may include one or more modules
having program instructions that are executable by a computer
system to perform some or all of the functionality described herein
with regard to device 904. For example, application 908 may include
program instructions that are executable by a computer system to
perform some or all of the steps of method 100 and/or method 500.
In some embodiments, device 904 includes a computer system similar
to that of computer system 1000 described below with regard to at
least FIG. 10.
[0452] Server 902 may include a network entity that serves requests
by client entities, such as requests by device 904. In some
embodiments, server 902 hosts a content site, such as a website, a
file transfer protocol (FTP) site, an Internet search website or
other source of network content. In some embodiments, server 902
includes a supplemental insurance data manager system for
processing request relating to supplemental insurance policies. In
some embodiments, server 902 includes or otherwise has access to
data store 910. Data store 910 may include a database or similar
data repository. Data store 910 may include an image repository for
storing supplemental policy information and/or related
information.
[0453] In some embodiments, server 902 includes a premium module
912a and/or an indemnity module 912b. Modules 912a and/or 912b may
include program instructions that are executable by a computer
system to perform some or all of the functionality described herein
with regard to server 902. Module 912a may include program
instructions that are executable by a computer system to perform
some or all of the steps of methods 100 and 300. Module 912a may
include program instructions that are executable by a computer
system to perform some or all of the steps of methods 500, 700
and/or 750. In some embodiments, server 902 includes a computer
system similar to that of computer system 1000 described below with
regard to at least FIG. 10. Although server 902 is represented by a
single box, server 902 may include a single server (or similar
system), or a plurality of servers (and/or similar systems). For
example, server 902 may include a plurality of different servers
(andor similar systems) that are employed individually or in
combination to perform some or all of the functionality described
herein with regard to server 902.
[0454] In some embodiments environment 900 is used to employ
techniques described herein (e.g., the steps of method 100). For
example, page 200 may be served by module 912a of server 902 and
displayed to user 914 via user interface 907 of user device 904.
User (e.g., an agent) 914 may submit policy parameters 914 to
premium module 912a via fields 202 of page 200. Premium module 912a
may process policy parameters 914 to determine premium 402, and
serve page 400 (including premium 402), to user device 904 for
display to user 914 via user interface 907.
[0455] In some embodiments environment 900 is used to employ
techniques described herein (e.g., the steps of method 500). For
example, page 600 may be served by module 912b of server 902 and
displayed to user 914 via user interface 907 of user device 904.
User (e.g., an agent) 914 may submit loss parameters 916 to
indemnity module 912b via fields 602 of page 600. Indemnity module
912b may process loss parameters 916 to determine estimated
indemnity (for loss under a supplemental policy) 802, and serve
page 800 (including estimated indemnity 802) to user device 904 for
display to user 914 via user interface 907.
[0456] Although module 912a is illustrated as being employed by
server 912, embodiments may include implementing some or all of the
functionality of module 912a and/or an application 908 on any
suitable device. For example, some or all of the functionality of
module 912a may be provided on user device 904 (e.g., in place of
or in conjunction with an application 908) such that some or all of
the associated processes can be completed by user device 904.
Although module 912b is illustrated as being employed by server
902, embodiments may include implementing some or all of the
functionality of module 912b and/or an application 908 on any
suitable device. For example, some or all of the functionality of
module 912b may be provided on user device 904 (e.g., in place of
or in conjunction with an application 908) such that some or all of
the associated processes can be completed by a user device 904.
[0457] Accordingly, in some embodiments, provided is a supplemental
crop insurance revenue protection coverage that gives producers
greater control over their covered financial risk, and thereby the
value of their crop. In some embodiments, the coverage has no
impact on the liability or indemnity associated with the underlying
policies (such as the MPCI policies), producers are afforded
greater independence to choose the pricing guarantee time period
when they believe the underlying price discovery process does not
reflect their potential financial outcome. Such liberty of price
discovery period election may provide producers greater opportunity
to ensure price coverage comfort.
[0458] In some embodiments, the supplemental crop insurance revenue
protection coverage provides producers expanded flexibility in
revenue risk transfer, for example, by allowing them the
opportunity to choose multiple pricing discovery points throughout
the year. For example, producers may add one or more price
discovery periods for their underlying MPCI policy and the highest
actual price from those selections may be used to establish the
revenue guarantee for loss purposes if that price exceeds the
projected and harvest prices released by RMA. Accordingly,
perceptive producers may now cover the price risks not captured by
the narrow range of prices selected by the RMA. In some
embodiments, the supplemental crop insurance revenue protection
coverage provides producers with the freedom to select the
marketing time period when the producers believe their market price
revenue risk is of concern. For example, the supplemental crop
insurance revenue protection coverage enables these perceptive
business owners the opportunity to select coverage for those times
when they believe the markets will not be in their best financial
interests.
[0459] In some embodiments, the supplemental crop insurance revenue
protection coverage is a customizable non-reinsured supplemental
offering additional coverage for: Revenue Protection (RP) and Group
Risk Income Protection-Harvest Revenue Option (GRIP HRO) policies.
As additional coverage placed on top of the underlying MPCI
product, indemnity payments, like the premium payments under the
supplemental crop insurance revenue protection coverage, are
separate. A producer may experience a loss that triggers an
indemnity payment from the underlying MPCI policy without getting
an indemnity from the supplemental crop insurance revenue
protection coverage. Alternatively, unfavorable market prices could
negatively impact the producer's financial well-being without
triggering an indemnity from the underlying MPCI policy, but the
supplemental crop insurance revenue protection coverage may pay an
indemnity in this instance, helping to offset the financial losses
suffered by the producer.
[0460] In some embodiments, a producer must select at least one
alternative price discovery period when they first purchase the
supplemental crop insurance revenue protection coverage. In some
embodiments, a producer can add up to nine more price discovery
periods to that same policy throughout the crop year. Failure to
purchase an RP or GRIP MPCI product may result in the producer
still owing the premium for the supplemental crop insurance revenue
protection coverage policy but the policy, and subsequently its
coverage, will be cancelled for that crop year.
[0461] With the interactive user-interface for providing policy and
loss information related to the supplemental crop insurance revenue
protection coverage program and its ability to quickly generate
premiums for supplemental crop insurance revenue protection
coverage polices, agents may provide substantially real-time
premium estimates (e.g., provide premium estimates within a matter
of minutes) for their clients (e.g., producers) at the time of
purchasing the policy and all necessary information can be captured
to create a policy while the agent is "at the kitchen table" with
the client.
[0462] Although certain embodiments are described in the context of
supplemental crop insurance, the techniques described herein may be
employed in a variety of similar applications, such as Private Area
Revenue (PAR) Supplemental Insurance, Nursery Crop Insurance (e.g.,
Nursery Hurricane Named Peril Supplemental Insurance, Nursery
Production Infrastructure Supplemental Insurance, and Nursery
Grafted Fruit Stock Supplemental Insurance), PRF Supplemental
Insurance, Customized Revenue Supplemental Insurance, Regional Top
Up, Personal Yield Assurance Supplemental Insurance, and County
Yield Assurance Supplemental Insurance. For example, an agent
selling these types of coverage may gather policy parameters from
the insured, submit policy parameters 914 to an insurance system
via an interactive portal displayed by user device 904 (e.g., using
interactive pages/portals similar to at least pages 200-200j
described herein), premium module 912a of server 902 may employ
financial engineering techniques to generate a quote including the
premium for the supplemental policy (e.g., using financial
engineering techniques such as simulation techniques described
herein), and the quote including the premium for the supplemental
policy may be provided in real-time to the agent via the portal
displayed by the user device 904 (e.g., using interactive
pages/portals similar to at least pages 400-400b described herein).
Similarly, an agent may gather loss parameters from the insured for
the coverage, submit the loss parameters 916 to an insurance system
via an interactive portal displayed by user device 904 (e.g., using
interactive pages/portals similar to at least page 600 described
herein), the insurance system may determine an estimated indemnity
for a loss under the policy 802 (e.g., using financial engineering
techniques such as those described herein for calculating an
indemnity), and the estimated indemnity for a loss under the policy
802 may be provided in real-time to the agent via the portal
displayed by the user device 904 (e.g., using interactive
pages/portals similar to at least page 800 described herein).
[0463] FIG. 12A is an illustration of an exemplary PAR supplemental
policy information page 1200a in accordance with one or more
embodiments of the present invention. FIG. 12B is an illustration
of an exemplary PAR supplemental policy information page 1200b
including display of a determined premium for the PAR in accordance
with one or more embodiments of the present invention. Page 1200a
may include an interactive page including policy parameter fields
1202a that allow an agent to enter and submit PAR policy
parameters. Page 1200b may include an interactive page that
displays the submitted PAR policy parameters along with quote
information 1204b, including a premium quote (e.g., $35,267.21)
corresponding to policy parameters 1202a.
[0464] FIGS. 13A-13C are illustrations of exemplary nursery
supplemental policy information pages 1300a, 1300b and 1300c,
respectively, in accordance with one or more embodiments of the
present invention.
[0465] Page 1300a of FIG. 13A includes policy parameter fields
1302a for a nursery hurricane named peril supplemental insurance
policy, including personal information fields 1304a and policy
information fields 1306a for the entry of information relating to
the nursery hurricane named peril supplemental insurance policy
terms. An agent may use page 1300a to submit policy parameters in a
manner similar to that discussed above with regard to at least
supplemental policy information page 200. Upon submission of the
policy parameters via page 1300a, the insurance system may
determine a corresponding premium amount based on the policy
parameters, and provide for display of a premium amount for the
nursery hurricane named peril supplemental insurance policy via a
policy premium page in a manner similar to that discussed herein
for at least supplemental policy information page 400.
[0466] Page 1300b of FIG. 13B includes policy parameter fields
1302b for a nursery production infrastructure supplemental
insurance policy, including personal information fields 1304b and
policy information fields 1306b for the entry of information
relating to the nursery production infrastructure supplemental
insurance policy terms. An agent may use page 1300b to submit
policy parameters in a manner similar to that discussed above with
regard to at least supplemental policy information page 200. Upon
submission of the policy parameters via page 1300b, the insurance
system may determine a corresponding premium amount based on the
policy parameters, and provide for display of the premium amount
for the nursery production infrastructure supplemental insurance
policy via a policy premium page in a manner similar to that
discussed herein for at least supplemental policy information page
400.
[0467] Page 1300c of FIG. 13C includes policy parameter fields
1302c for a nursery grafted fruit stock supplemental insurance
policy, including personal information fields 1304c and policy
information fields 1306c for the entry of information relating to
the nursery grafted fruit stock supplemental insurance policy
terms. An agent may use page 1300c to submit policy parameters in a
manner similar to that discussed above with regard to at least
supplemental policy information page 200. Upon submission of the
policy parameters via page 1300c, the insurance system may
determine a corresponding premium amount based on the policy
parameters, and provide for display of the premium amount for the
nursery grafted fruit stock supplemental insurance policy via a
policy premium page in a manner similar to that discussed herein
for at least supplemental policy information page 400.
[0468] In some embodiments, submission for a supplemental policy
may be subject to a pre-acceptance process. For example, in the
context of nursery insurance, a set of preliminary parameters may
be used to score the insured and the process may not proceed to the
process for collecting full set of policy parameters unless the
score satisfies a threshold. In some embodiments, a nursery
pre-acceptance may consider categories that can be used to identify
sophisticated producers (e.g., size of operation (regional
specific), type of irrigation, product turnover, nature of line-out
stock, mechanization of protection, sophistication of production
records, and/or the like).
[0469] FIG. 14 is a flowchart that illustrates a method 1400 of
pre-acceptance quoting nursery supplemental insurance in accordance
with one or more embodiments of the present invention. Method 1400
may generally include providing for display of a nursery
pre-acceptance information entry page (block 1402), and upon
determining that parameters have been received via the nursery
pre-acceptance information entry page (block 1404), determining
whether the submission is accepted (block 1406). It may be
determined that a submission is accepted based upon a score (e.g.,
a score based upon the parameters received via the nursery
pre-acceptance information entry page) exceeding a threshold score.
If the submission is accepted, the process may proceed to providing
for display of nursery information entry page links (block 1408).
Upon determining that one of the links is selected (block 1410,
1414 or 1418), a corresponding page (e.g., a nursery hurricane
named peril supplemental insurance information entry page, a
nursery production infrastructure supplemental insurance
information entry page, or a grafted fruit stock supplemental
insurance information entry page) may be displayed (blocks 1412,
1416 or 1420). If the submission is not accepted (block 1406), the
process may proceed to providing an indication that the submission
was not accepted (block 1420) and returning to display of the
nursery pre-acceptance information entry page (block 1402). If the
submission is accepted (block 1406), but no link is selected (e.g.,
due to a time-out) (blocks 1410, 1414 or 1418), the process may
return to display of the nursery pre-acceptance information entry
page (block 1402).
[0470] FIG. 15A is an illustration of an exemplary a nursery
pre-acceptance information entry page 1500a in accordance with one
or more embodiments of the present invention. FIG. 15B is an
illustration of an exemplary a nursery information entry links page
1500b displaying nursery information entry page links 1502b (e.g.,
links 1504a-1504c) and a score 1506b in accordance with one or more
embodiments of the present invention. It may be determined that a
submission is accepted based upon score 1506b exceeding a threshold
score (e.g., a threshold score of seventy-five). Upon selection of
link 1504a by a user, a nursery hurricane named peril supplemental
insurance information entry page similar to that of page 1300a of
FIG. 13A may be displayed. Upon selection of link 1504b by a user,
a nursery production infrastructure supplemental insurance
information entry page similar to that of page 1300b of FIG. 13B
may be displayed. Upon selection of link 1504c by a user, a grafted
fruit stock supplemental insurance information entry page similar
to that of page 1300c of FIG. 13C may be displayed.
[0471] FIG. 16 is a block diagram that illustrates a page hierarchy
1600 for a supplemental insurance content site in accordance with
one or more embodiments of the present invention. As depicted a
top-level page may include an agent/admin login page 1602. Upon
successfully logging in via agent/admin login page 1602, a user may
be directed to a main page 1604 (e.g., a page similar to that of a
portal main page 1100 depicted in FIG. 11). Main page 1604 may
include links to an administration page 1606 and/or an agent page
1608. Main page 1604 may include links to a training page 1610, a
quiz page 1612 and/or a quoters page 1614. Access to a page may be
based on privileges associated the user account used to login. For
example, if an agent logs in and does not have administrator
privileges, the main page 1604 may include a link to the agent page
1608, but not a link to the administration page 1606. Similarly, if
an administrator logs in and does have administrator privileges and
agent privileges, the main page 1604 may include a link to the
agent page 1608 and the administration page 1606.
[0472] Administrator page 1606 may include links to a monitor all
page 1616, a monitor agent page 1618 and/or an administrator
dashboard 1620. Agent page 1608 may include links to a quote page
1622, an indemnity scenario calculator page 1624, a historical
pricing data access page 1626 and/or a user account area page
1628.
[0473] It will be appreciated that methods 100, 300, 500, 700, 750
and 1400 are exemplary embodiments of methods that may be employed
in accordance with the techniques described herein. Methods 100,
300, 500, 700, 750 and 1400 may be modified to facilitate
variations of its implementations and uses. Methods 100, 300, 500,
700, 750 and 1400 may be implemented in software, hardware, or a
combination thereof. Some or all of methods 100, 300, 500, 700, 750
and 1400 may be implemented by one or more of the
modules/applications described herein, such module 712a, 712b
and/or application 708 depicted and described in more detail below
with regard to FIG. 5. The order of the steps of methods 100, 300,
500, 700, 750 and 1400 may be changed, and various elements may be
added, reordered, combined, omitted, modified, etc.
[0474] Exemplary Computer System
[0475] FIG. 10 is a block diagram that illustrates an exemplary
computer system 1000. Various portions of systems and methods
described herein, may include or be executed on one or more
computer systems similar to system 1000. For example, server 902
and/or user device 904 may include a configuration similar to at
least a portion of computer system 1000. Further,
methods/processes/modules described herein (e.g., module 912a,
module 912b and/or application 908) may be executed by one or more
processing systems similar to that of computer system 1000.
[0476] Computer system 1000 may include one or more processors
(e.g., processors 1010a-1010n) coupled to system memory 1020, an
input/output I/O device interface 1030 and a network interface 1040
via an input/output (I/O) interface 1050. A processor may include a
single processor device and/or a plurality of processor devices
(e.g., distributed processors). A processor may be any suitable
processor capable of executing/performing instructions. A processor
may include a central processing unit (CPU) that carries out
program instructions to perform the basic arithmetical, logical,
and input/output operations of computer system 1000. A processor
may include code (e.g., processor firmware, a protocol stack, a
database management system, an operating system, or a combination
thereof) that creates an execution environment for program
instructions. A processor may include a programmable processor. A
processor may include general and/or special purpose
microprocessors. A processor may receive instructions and data from
a memory (e.g., system memory 1020). Computer system 1000 may be a
uni-processor system including one processor (e.g., processor
1010a), or a multi-processor system including any number of
suitable processors (e.g., 1010a-1010n). Multiple processors may be
employed to provide for parallel and/or sequential execution of one
or more portions of the techniques described herein. Processes and
logic flows described herein may be performed by one or more
programmable processors executing one or more computer programs to
perform functions by operating on input data and generating
corresponding output. Processes and logic flows described herein
may be performed by, and apparatus can also be implemented as,
special purpose logic circuitry, e.g., an FPGA (field programmable
gate array) or an ASIC (application specific integrated circuit).
Computer system 1000 may include a computer system employing a
plurality of computer systems (e.g., distributed computer systems)
to implement various processing functions.
[0477] I/O device interface 1030 may provide an interface for
connection of one or more I/O devices 1060 to computer system 1000.
I/O devices may include any device that provides for receiving
input (e.g., from a user) and/or providing output (e.g., to a
user). I/O devices 1060 may include, for example, graphical user
interface displays (e.g., a cathode ray tube (CRT) or liquid
crystal display (LCD) monitor), pointing devices (e.g., a computer
mouse or trackball), keyboards, keypads, touchpads, scanning
devices, voice recognition devices, gesture recognition devices,
printers, audio speakers, microphones, cameras, or the like. I/O
devices 1060 may be connected to computer system 1000 through a
wired or wireless connection. I/O devices 1060 may be connected to
computer system 1000 from a remote location. I/O devices 1060
located on remote computer system, for example, may be connected to
computer system 1000 via a network and network interface 1040.
[0478] Network interface 1040 may include a network adapter that
provides for connection of computer system 1000 to a network.
Network interface may 1040 may facilitate data exchange between
computer system 1000 and other devices connected to the network.
Network interface 1040 may support wired or wireless communication.
The network may include an electronic communication network, such
as the Internet, a local area network (LAN), a wide area (WAN), a
cellular communications network or the like.
[0479] System memory 1020 may be configured to store program
instructions 1100 and/or data 1110. Program instructions 1100 may
be executable by a processor (e.g., one or more of processors
1010a-1010n) to implement one or more embodiments of the present
technique. Instructions 1100 may include modules of computer
program instructions for implementing one or more techniques
described herein with regard to various processing modules. Program
instructions may include a computer program (also known as a
program, software, software application, script, or code). A
computer program may be written in any form of programming
language, including compiled or interpreted languages, or
declarative/procedural languages. A computer program may include a
unit suitable for use in a computing environment, including as a
stand-alone program, a module, a component, a subroutine. A
computer program may or may not correspond to a file in a file
system. A program may be stored in a portion of a file that holds
other programs or data (e.g., one or more scripts stored in a
markup language document), in a single file dedicated to the
program in question, or in multiple coordinated files (e.g., files
that store one or more modules, sub programs, or portions of code).
A computer program may be deployed to be executed on one or more
computer processors located locally at one site or distributed
across multiple remote sites and interconnected by a communication
network.
[0480] System memory 1020 may include a non-transitory computer
readable storage medium, such as a machine readable storage device,
a machine readable storage substrate, a memory device, or any
combination thereof, or the like. Non-transitory computer readable
storage medium may include non-volatile memory (e.g., flash memory,
ROM, PROM, EPROM, EEPROM memory), volatile memory (e.g., random
access memory (RAM), static random access memory (SRAM),
synchronous dynamic RAM (SDRAM)), bulk storage memory (e.g., CD-ROM
and/or DVD-ROM, hard-drives), or the like. System memory 1020 may
include a non-transitory computer readable storage medium having
program instructions stored thereon that are executable by a
computer processor (e.g., one or more of processors 1010a-1010n) to
cause some or all of the subject matter and the functional
operations described herein. A memory (e.g., system memory 1020)
may include a single memory device and/or a plurality of memory
devices (e.g., distributed memory devices).
[0481] I/O interface 1050 may be configured to coordinate I/O
traffic between processors 1010a-1010n, system memory 1020, network
interface 1040, I/O devices 1060 and/or other peripheral devices.
I/O interface 1050 may perform protocol, timing or other data
transformations to convert data signals from one component (e.g.,
system memory 1020) into a format suitable for use by another
component (e.g., processors 1010a-1010n). I/O interface 1050 may
include support for devices attached through various types of
peripheral buses, such as a variant of the Peripheral Component
Interconnect (PCI) bus standard or the Universal Serial Bus (USB)
standard.
[0482] Embodiments of the techniques described herein may be
implemented using a single instance of computer system 1000, or
multiple computer systems 1000 configured to host different
portions or instances of embodiments. Multiple computer systems
1000 may provide for parallel or sequential processing/execution of
one or more portions of the techniques described herein.
[0483] Those skilled in the art will appreciate that computer
system 1000 is merely illustrative and is not intended to limit the
scope of the techniques described herein. Computer system 1000 may
include any combination of devices and/or software that may perform
or otherwise provide for the performance of the techniques
described herein. For example, computer system 1000 may include a
desktop computer, a laptop computer, a tablet computer, a server
device, a client device, a mobile telephone, a personal digital
assistant (PDA), a mobile audio or video player, a game console, a
Global Positioning System (GPS), or the like. Computer system 1000
may also be connected to other devices that are not illustrated, or
may operate as a stand-alone system. In addition, the functionality
provided by the illustrated components may in some embodiments be
combined in fewer components or distributed in additional
components. Similarly, in some embodiments, the functionality of
some of the illustrated components may not be provided and/or other
additional functionality may be available.
[0484] Those skilled in the art will also appreciate that, while
various items are illustrated as being stored in memory or on
storage while being used, these items or portions of them may be
transferred between memory and other storage devices for purposes
of memory management and data integrity. Alternatively, in other
embodiments some or all of the software components may execute in
memory on another device and communicate with the illustrated
computer system via inter-computer communication. Some or all of
the system components or data structures may also be stored (e.g.,
as instructions or structured data) on a computer-accessible medium
or a portable article to be read by an appropriate drive, various
examples of which are described above. In some embodiments,
instructions stored on a computer-accessible medium separate from
computer system 1000 may be transmitted to computer system 1000 via
transmission media or signals such as electrical, electromagnetic,
or digital signals, conveyed via a communication medium such as a
network and/or a wireless link. Various embodiments may further
include receiving, sending or storing instructions and/or data
implemented in accordance with the foregoing description upon a
computer-accessible medium. Accordingly, the present invention may
be practiced with other computer system configurations.
[0485] It should be understood that the description and the
drawings are not intended to limit the invention to the particular
form disclosed, but to the contrary, the intention is to cover all
modifications, equivalents, and alternatives falling within the
spirit and scope of the present invention as defined by the
appended claims. Further modifications and alternative embodiments
of various aspects of the invention will be apparent to those
skilled in the art in view of this description. Accordingly, this
description and the drawings are to be construed as illustrative
only and are for the purpose of teaching those skilled in the art
the general manner of carrying out the invention. It is to be
understood that the forms of the invention shown and described
herein are to be taken as examples of embodiments. Elements and
materials may be substituted for those illustrated and described
herein, parts and processes may be reversed or omitted, and certain
features of the invention may be utilized independently, all as
would be apparent to one skilled in the art after having the
benefit of this description of the invention. Changes may be made
in the elements described herein without departing from the spirit
and scope of the invention as described in the following claims.
Headings used herein are for organizational purposes only and are
not meant to be used to limit the scope of the description.
[0486] As used throughout this application, the word "may" is used
in a permissive sense (i.e., meaning having the potential to),
rather than the mandatory sense (i.e., meaning must). The words
"include", "including", and "includes" mean including, but not
limited to. As used throughout this application, the singular forms
"a", "an" and "the" include plural referents unless the content
clearly indicates otherwise. Thus, for example, reference to "an
element" may include a combination of two or more elements. Unless
specifically stated otherwise, as apparent from the discussion, it
is appreciated that throughout this specification discussions
utilizing terms such as "processing", "computing", "calculating",
"determining" or the like refer to actions or processes of a
specific apparatus, such as a special purpose computer or a similar
special purpose electronic processing/computing device. In the
context of this specification, a special purpose computer or a
similar special purpose electronic processing/computing device is
capable of manipulating or transforming signals, typically
represented as physical electronic or magnetic quantities within
memories, registers, or other information storage devices,
transmission devices, or display devices of the special purpose
computer or similar special purpose electronic processing/computing
device.
[0487] The techniques described herein may include or otherwise be
used in conjunction with techniques described in U.S. Provisional
Patent Application No. 61/824,732, filed on May 17, 2013, and
titled "SYSTEMS, COMPUTER MEDIUM AND COMPUTER-IMPLEMENTED METHODS
FOR MANAGING SUPPLEMENTAL CROP INSURANCE POLICIES"; U.S.
Provisional Patent Application No. 61/834,753, filed on Jun. 13,
2013, and titled "SYSTEMS, COMPUTER MEDIUM AND COMPUTER-IMPLEMENTED
METHODS FOR MANAGING SUPPLEMENTAL CROP INSURANCE POLICIES"; U.S.
Provisional Patent Application No. 61/845,132, filed on Jul. 11,
2013, and titled "SYSTEMS, COMPUTER MEDIUM AND COMPUTER-IMPLEMENTED
METHODS FOR MANAGING SUPPLEMENTAL CROP INSURANCE POLICIES"; U.S.
Provisional Patent Application No. 61/856,425, filed on Jul. 19,
2013, and titled "SYSTEMS, COMPUTER MEDIUM AND COMPUTER-IMPLEMENTED
METHODS FOR MANAGING SUPPLEMENTAL CROP INSURANCE POLICIES"; and
U.S. Provisional Patent Application No. 61/871,726, filed on Aug.
29, 2013, and titled "SYSTEMS, COMPUTER MEDIUM AND
COMPUTER-IMPLEMENTED METHODS FOR MANAGING SUPPLEMENTAL INSURANCE
POLICIES", the disclosures of which are each hereby incorporated by
reference in their entireties.
* * * * *